Co-founder of EasyA, Dom Kwok, has suggested that the XRP ETF could spark the largest inflows ever seen in the crypto market. This comes as the U.S. SEC is expected to deliver decisions on the product in October.
Dom Kwok Says XRP ETF Could Attract Huge Demand
Speaking in an interview on the Paul Barron Podcast, Dom Kwok argued that an XRP ETF would likely attract record inflows if approved. He emphasized that XRP has one of the most widely distributed global holder bases in the industry. Kwok also shared that the token is second only to Bitcoin and Ethereum in liquidity.
The co-founder explained that Bitcoin and Ethereum’s nominal prices often make them less accessible to retail investors. XRP, on the other hand, offers a more affordable entry point. He believes that it could make it the preferred option for new investors entering through ETFs.
He also added that many people who do not directly buy crypto are increasingly turning to ETFs as their first step into the space. With only about 7% of the global population currently holding crypto, Kwok sees ETFs as a critical on-ramp for the wider demographic.
This echoes ETF analyst Nate Geraci’s earlier deadline call. Nate noted that XRP ETFs could gain approval within 60 days, pointing to October. He emphasized that investors may be underestimating the demand for the product. This is especially given the asset’s strong presence in futures markets.
XRP ETFs Awaiting Decisions in October
The U.S. Securities Exchange Commission has pushed back its rulings on multiple filings. The SEC initially extended deadlines for 21Shares, Grayscale, Bitwise, CoinShares, and Canary Capital. In separate filings, the Commission noted that it has designated October 19 as the new date for a decision.
Furthermore, the SEC also announced that Cboe BZX’s proposed rule change to list and trade shares of the WisdomTree XRP ETF will extend the review period. The Commission noted that October 24 has been set as the deadline for either approving or rejecting the proposal. Except for Franklin Templeton’s application, all pending spot XRP funds are now tied to October deadlines.
However, experts are projecting billions of dollars in inflows once the product launches. It was highlighted that while Bitcoin had three ETFs and Ethereum one, there are currently over ten filings for XRP. This automatically translates to more volume.
It is also worth mentioning that XRP futures contracts crossed $1 billion in open interest. This is the fastest futures product to reach that milestone in just three months. Moreover, more than $800 million has already been invested in futures-based XRP ETFs. This suggests that pent-up demand could translate into massive inflows once spot products are launched.
The SEC’s rulings in October will determine whether XRP joins the small group of cryptocurrencies with spot ETF approval in the U.S. market.
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Source: https://coingape.com/xrp-etf-to-drive-largest-crypto-inflows-ever-tech-founder-says-amid-october-deadline/
