If The Spot Bitcoin ETF Is Approved By The SEC, Ethereum And XRP Can Follow

XRP and ETH have the potential to catch up with Bitcoin ETF. (Photo; Doc. Modern Consensus)

JAKARTA - The United States Securities and Exchange Commission (SEC) will most likely approve of a spot Bitcoin ETF product in the near future. This decision has the potential to have a positive impact on the crypto market, especially for Ethereum and XRP, the two largest digital currencies after Bitcoin.

One of the companies submitting the Bitcoin spot ETF application was Valkyrie. The company's Chief Investment Officer, Steven McClurg, revealed that he would not be surprised if ETF Ethereum and XRP immediately followed in the market. According to him, Ethereum and XRP have a huge appeal to investors, given their role in the crypto industry.

Ethereum is a leading blockchain platform for decentralized applications (dApps), which provides a variety of services and solutions in the financial, social, entertainment, and other sectors. Ethereum is also in the transition stage from Proof of Work (PoW) consensus mechanism to Proof of Stake (PoS), which is expected to increase efficiency, security, and network scalability.

XRP is a digital currency created by Ripple, a company that offers fast, cheap, and transparent cross-border payment solutions. XRP aims to become a bridge between various fiat and cryptocurrencies, as well as facilitate exchange of value between various payment networks.

Currently, these two digital currencies, ETH and XRP, are trading at the levels of IDR 36.9 million and IDR 8,700. Still far from their all-time highs. However, with the ETF Bitcoin Spot, which can increase liquidity, legitimacy, and crypto market accessibility, Ethereum and XRP are likely to experience significant price increases.

Some crypto analysts and observers have expressed their hope to see Ethereum spot ETF and XRP spot ETF on the market. One of them is terrett, a crypto journalist.

Terrett stated that the spot's ETF XRP could provide a major boost to the XRP ecosystem, which is currently facing lawsuits from the SEC. The SEC alleges that XRP is an unregistered securities, not a digital currency. Ripple denies these allegations and seeks to prove that XRP is a legitimate and fruitful asset.

While there has been no official application for ETF Ethereum spot and ETF XRP spot submitted to the SEC, many hope that it will happen soon, following in the footsteps of the ETF Bitcoin spot.