assin Mobarak, founder of Dizercapital, has recently brought attention to the potential of Wall Street institutions filing for an XRP Spot ETF in the United States. His analysis suggests that such a move could capitalize on untapped market potential and offer strategic advantages.
Institutional Demand for Regulated XRP Positions
Mobarak identifies significant pent-up demand among institutions for regulated investment positions in XRP. He cites the market's swift reaction to a false rumor about BlackRock's XRP ETF filing as evidence of this demand. The rumor led to a sharp increase in XRP's price, demonstrating the market's responsiveness to such developments.
Opportunity in the Open Field of XRP ETFs
Unlike Bitcoin and Ethereum, there are currently no filings for an XRP spot ETF. This situation presents an open field for Wall Street institutions to become market leaders. Being the first to file an XRP ETF could provide substantial strategic benefits.
Challenging the SEC Post-XRP Court Ruling
Mobarak views filing for an XRP spot ETF as a bold challenge to the U.S. Securities and Exchange Commission (SEC), especially following the court ruling that XRP is not a security. He suggests that large institutions should dare to submit an application, potentially leading to significant legal developments if the SEC denies the filing.
Risk-to-Reward Ratio Favoring XRP ETF Approval
The risk-to-reward ratio for an XRP spot ETF is seen as compelling, with Mobarak arguing that the SEC might favor approval to avoid further legal confrontations. Such approval could have a considerable impact on the market.
Conclusion: The Potential Market Impact of an Approved XRP ETF
An approved XRP spot ETF could trigger a significant market response, both in terms of attracting institutional investors and influencing overall market dynamics. Mobarak envisions this development having both an avalanche and snowball effect on the cryptocurrency market.