Here’s Why Wall Street Institutions May File XRP Spot ETF

Yassin Mobarak, founder of Dizercapital, outlined compelling reasons why Wall Street financial institutions may consider filing for an XRP spot ETF in the US.

In a recent tweet, Mobarak suggested that Wall Street financial institutions should boldly explore the untapped potential of exchange-traded funds that invest directly in XRP. He expressed that such a move should be a key consideration for them, given the Bitcoin (BTC) and Ethereum (ETH) spot ETF’s already claimed first-mover advantage.

Mr. Mobarak provided a strategic perspective on the XRP market and highlighted why Wall Street funds should consider the XRP Spot ETF.

If I were an institutional investor fund on Wall Street and thought I had a large first-mover advantage, #BTC and #ETH Since spot ETFs are no longer approved, I would like to take the plunge and seriously consider applying. #XRP Spot ETF. why?

1. There is significant pent-up demand…

— Yasin Mobarak🪝 (@Dizer_YM) December 17, 2023

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Institutional pent-up demand for XRP positions

Mobarak noted that there is significant pent-up demand among financial institutions to secure regulated positions in XRP. He highlighted the market’s swift reaction to BlackRock’s fake online post about its XRP Spot ETF application. He believes the sharp price impact on XRP is a strong indicator of demand for the XRP ETF.

As reported, amid the fake XRP ETF filings, XRP skyrocketed significantly from $0.665 to over $0.73 in less than 30 minutes.

XRP Spot ETF Open Field

Second, Mobarak emphasized that unlike BTC and ETH, no institutions have yet applied to apply for an XRP Spot ETF. He noted that this situation presents an unexplored field for potential market leaders. Additionally, he said being first to file could offer a strategic advantage for Wall Street funds.

Challenge to SEC

Additionally, Mobarak suggested that the filing of an XRP Spot ETF could be a bold move to challenge the U.S. Securities and Exchange Commission (SEC) following the XRP court ruling.

“It will be very interesting to see how the SEC reacts.” The founder of Dither Capital said:

Specifically, it allows institutional funds with large amounts of capital to challenge the SEC by filing XRP ETF applications without fear that regulators will reject them. I urged them to consider it.

He said the legal developments following such a denial would be intense, given the court’s ruling that XRP is not a security.

Additionally, Mobarak argued that the XRP Spot ETF’s risk-reward ratio is compelling. In particular, he argued that the prospect of the SEC avoiding additional legal battles could favor approval of the XRP ETF.

Ultimately, Mobarak envisions a scenario where an approved XRP spot ETF triggers both an avalanche and a snowball effect on the market.