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Crypto Analyst Predicts XRP ETF Launch in 2024 Driven by Significant Catalysts

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2024 is projected to be a breakthrough year for cryptocurrencies according to prominent crypto analyst Lark Davis. Major regulatory approvals and technical upgrades lining up over the year could usher the sector into an exciting new phase of growth and adoption. The past year was highlighted by the U.S. Securities and Exchange Commission (SEC) decision to allow the first bitcoin futures exchange-traded funds (ETFs) in October 2021, ending a decade-long impasse.

This paved the way for major crypto investment vehicles to enter the mainstream markets. ProShares and Valkyrie both launched bitcoin futures ETFs, which together accumulated over $1 billion in assets in their opening week. Davis believes this opened the floodgates, saying, “The SEC seems to have accepted that Bitcoin, at the very least, is not a security. Their capitulation on this key issue after so many years means we are likely to see many more crypto ETF approvals going forward.”

crypto adoption and upgrades

Potential for Ethereum and XRP spot ETFs

Davis predicts that a spot ETF for ether (ETH), the native cryptocurrency of the Ethereum network, may receive SEC approval as early as May 2024. He cites comments from lawyer Miles Jennings of venture capital firm Andreessen Horowitz, who argued that the SEC tacitly acknowledged that ETH is also not a security through their approval of ETH futures products. If approved, an ETH spot ETF would further legitimize Ethereum in the eyes of institutional investors.

Similarly, Davis forecasts that an XRP exchange-traded product may launch throughout 2024. This is owing to the outcome of the ongoing securities lawsuit between Ripple Labs, the developer of XRP, and the SEC. A federal court ruled last year that XRP is also not a security like Bitcoin. As such, Davis believes “regulators may feel more comfortable greenlighting an XRP ETF” given the precedent set by the lawsuit’s decision.

Prospects of broader crypto adoption and upgrades

Should either an ETH or XRP spot ETF receive the nod from the SEC, it would represent another critical step towards the mainstream adoption of digital assets, according to Davis. It demonstrates that U.S. regulators are allowing investment vehicles beyond just Bitcoin, recognizing features of other major blockchains. This could galvanize even greater retail and institutional demand, channelling new capital flows into the crypto market.

Davis also points to important technical milestones for ether and bitcoin that may drive price performance. The Merge upgrade completing the transition of Ethereum to a proof-of-stake consensus mechanism is targeted for the second quarter. Meanwhile, bitcoin is on track to undergo its fourth block reward halving in 2024, where the new block emission is cut in half to slow its inflation rate. Both events are anticipated to be net positive for their corresponding assets.

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Matthew Garcia is a crypto article writer with over 5 years of experience in the industry. He is passionate about writing about the latest news and trends in the cryptocurrency space, and he has a deep understanding of the technology behind blockchain. Matthew Garcia has written for a variety of publications, including CoinDesk, The Block, and CryptoSlate. He is also a regular contributor to the Ailtra.io blog, where he writes about the latest developments in the Ailtra ecosystem. Matthew Garcia is a skilled writer with a knack for explaining complex technical concepts in a clear and concise way. He is also a creative writer who is able to produce engaging and informative content. Matthew Garcia is always up-to-date on the latest news and trends in the crypto space, and he is always looking for new ways to share his knowledge with others.
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