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Spot XRP exchange-traded funds may see more demand than people anticipate, according to The ETF Institute co-founder and NovaDius Wealth Management President Nate Geraci.
“Think people might be underestimating demand for spot XRP ETFs,” Geraci said Tuesday on X, highlighting that the XRP futures contract had set a Chicago Mercantile Exchange record.
The CME on Monday reported that its XRP futures contract had surpassed $1 billion in open interest, the fastest-ever contract to do so. According to the CME, the XRP contract hit the milestone in just over three months.
“This is a huge sign of market maturity, with new capital entering the market,” the CME said.
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The recent XRP record is likely to strengthen the case for a spot ETF approval. Experts, including Geraci and Bloomberg Senior ETF Analyst James Seyffart, have often said a robust Commodity Futures Trading Commission-regulated futures market would be required for the Securities and Exchange Commission to approve spot XRP ETFs.
There are at least seven XRP ETF applications on the SEC’s desk from issuers such as Bitwise, Canary Capital, Franklin Templeton and Grayscale, according to a list compiled by Seyffart and fellow Bloomberg Senior ETF Analyst Eric Balchunas. Geraci has continued to predict that BlackRock (NYSE:BLK) would eventually join the bandwagon, but there is no sign of such a move yet.
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Seyffart and Balchunas in June gave XRP ETFs a 95% chance of approval.
“Odds haven’t really changed much if at all,” Seyffart said Tuesday on X.
Popular blockchain-based cryptocurrency prediction market Polymarket, on the other hand, places the odds of a spot XRP ETF approval at 84%.
But approval of these products is not expected until their final deadline. For many of the spot XRP ETF applications, the final deadline is in October.
Ahead of this deadline, analysts have suggested that there is meaningful engagement between issuers and the SEC, citing recent filing updates.
“Bunch of XRP ETF filings being updated by issuers today. Almost certainly due to feedback from [sic] SEC. Good sign, but also mostly expected,” Seyffart said last week.