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The Kryptos industry retains its breath in the face of still hesitant regulation. While the enthusiasm for the ETF is growing, the Securities and Stock Exchange Commission (SEC) of the United States has just postponed its decision to an important request: the conversion of the XRP credibility in the gray level to the ETF.
This postponement, announced on Tuesday, illustrates increased regulatory problems with these assets, although the financial products associated with cryptus gain legitimacy with institutional investors. Between the regulatory uncertainty and strategies of expansion for the main asset managers, expectations are extended for XRP ETF supporters.
Dry expands the examination of the gray side of the ETF XRP
The US Financial Gendarme decided to exercise its right to postpone its decision at the request of the gray, which aims to transform its confidence XRP into a negotiated grant fund (ETF). In its press release, the Agency indicates that it considers it “appropriate” to extend the research period to assess the consequences of this transformation in more detail.
The announcement immediately had an impact on the XRP course, which recorded a 1.2 % drop after it reached the peak inside $ 2.2. This postponement is not an isolated case: SEC also rejected its decisions about similar proposals, especially those that focus on dogecoin and litecoin ETF.
Battle of ETF XRP and the unwillingness of financial giants
If the grayscale is on the first line, other players are also trying to put the ETF XRP on the market. SEC must still decide on applications submitted by 21 Shares and Canary Capital, which are waiting for the judgment in the coming weeks. Franklin Templeton, one of the heavy weights in Asset Management, also expressed its interest in the XRP ETF by the recent deposit of an official application.
On the other hand, the giants like Blackrock and Fidelity, but already involved in the Bitcoins and Ethereum ETF market, keep in distance from the ETF XRP. Blackrock even rejected the idea of investing in financial products related to alternative crypts, which could indicate increased skepticism with regard to uncertain regulations and prospects for the XRP market.
The uncertainty about the regulation of crypto ETF in the United States continues to weigh players on the market. Despite the measured optimism (polymarket analysts estimate 75 % chances of approval XRP ETF), caution remains fine.
SEC’s decision could condition the development of Altcoin market that would affect the XRP price, but also the attitude of institutional investors towards alternative crypts. This postpone again emphasizes the caution of the regulatory body in the face of a sector full of mutation, which is still trying to find a place next to traditional financial assets.
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A graduate of the Toulouse and the Blockchain Consultant Certification certification holder and I joined the adventure of Cointribuna in 2019. I convinced of the potential of blockchain to transform many economy sectors, committing to raising awareness and informing the general public about how the ecosysty developed. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.
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The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.