Analyst: XRP has low odds for ETF approval, while Elon Musk’s preferred meme coin leads the way
A leading ETF analyst has recently made a prediction regarding the chances of different cryptocurrencies receiving approval for ETFs by 2025. According to the analyst, XRP is facing the lowest probability of obtaining ETF approval due to its ongoing legal battle with the Securities and Exchange Commission (SEC).
The Securities and Exchange Commission filed a lawsuit against Ripple Labs in December 2020, alleging that the company conducted an unregistered securities offering through the sale of XRP. Since then, XRP has been embroiled in a legal battle with the SEC, with Ripple Labs fighting to clear its name and establish XRP as a digital asset rather than a security.
The uncertainty surrounding the legal status of XRP has caused many investors to doubt the cryptocurrency’s ability to secure ETF approval. Without regulatory clarity, XRP may continue to face challenges when it comes to mainstream adoption and acceptance by institutional investors.
In contrast, memecoins like Dogecoin have been gaining popularity and attracting significant attention from retail investors. Despite their meme status, Dogecoin and other memecoins have seen a surge in demand, driven by social media hype and celebrity endorsements.
The analyst’s prediction underscores the importance of regulatory clarity in determining the future success of cryptocurrencies. Without a clear regulatory framework, cryptocurrencies may struggle to gain widespread acceptance and approval for investment products like ETFs.
While XRP may face an uphill battle in securing ETF approval, other cryptocurrencies like Bitcoin and Ethereum have already gained traction among institutional investors. Both Bitcoin and Ethereum have been embraced by major financial institutions and companies, paving the way for potential ETF approval in the future.
Overall, the analyst’s prediction highlights the challenges facing cryptocurrencies with regulatory uncertainties. As the cryptocurrency market continues to evolve, regulatory clarity will play a crucial role in determining which cryptocurrencies succeed in gaining mainstream acceptance and approval for investment products like ETFs.
