Following the XRP exchange-traded fund (ETF) application made by Bitwise in October, the price of XRP has been struggling to rise. XRP, which was at $ 0.66 at the close of last month, is currently trading at $ 0.53, with a loss of almost 20 percent.
SEC’s Objection to Ripple
The reasons for the negative price performance include the US Securities and Exchange Commission (SEC) Ripple 
$0.537874The legal process against him has a negative impact. The SEC’s objection against Ripple reduces the possibility of XRP’s ETF approval.
Kaiko: SEC Position Makes ETF Approval Difficult
Kaiko analysts noted that the SEC’s ongoing legal battle with Ripple and market manipulation concerns make XRP ETF approval difficult. “The chances of Grayscale moving from private placements to the XRP ETF are very low,” the analysis said. The SEC’s main concern is market manipulation.” The statement was included.
Grayscale recently introduced an XRP trust, which will eventually be converted into an ETF. However, Kaiko stated that the probability of this is low.
The Role of the Futures Market
Analysts note that there is no consensus on whether the lack of a futures market for XRP limits the chances of ETF approval. While some argue that the futures market is not necessary for ETF approval, others think it is beneficial. Pro-crypto SEC member Hester Peirce noted that a spot ETF is possible without futures.
Peirce stated that approval of a spot ETF may be possible even if there is no futures market. But this is Bitcoin 
$63,272 and Ethereum 
$2,468 It makes it more similar to products created for cryptocurrencies such as.
We will have to wait to see the future steps of Bitwise and Grayscale. It is stated that the SEC will evaluate each product within its own “facts and circumstances”.
In Grayscale’s successful lawsuit against the SEC, approval of the Bitcoin spot ETF occurred after the futures fund was available. For XRP, this may not be valid due to different market conditions.
Regulation of the ETF market and the SEC’s stance play an important role in crypto assets like XRP becoming financial products. For investors, these developments continue to create uncertainty about the future of the market.
The SEC’s legal battle over XRP and Ripple continues to have significant impacts on the cryptocurrency market. XRP investors are closely monitoring the SEC’s stance on ETF approval. Future developments may be decisive in the adoption of crypto assets as financial instruments.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
