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Yassin Mobarak, the founder of Dizer Capital, has raised concerns over the absence of an application for a spot Exchange-Traded Fund (ETF) for XRP. This comes amid a flurry of activity in the crypto ETF space, highlighted by BlackRock’s recent move to file for a spot-traded Ethereum fund.
BlackRock, the world’s largest asset manager, has shown interest in Ethereum and previously attempted to launch a spot Bitcoin ETF. These efforts place them alongside other financial heavyweights like Fidelity Investments and Grayscale. However, Mobarak finds it peculiar that amid these developments, XRP, a currency he describes as having achieved legal clarity, has yet to see similar advancements in the ETF arena.
The legal status of XRP underwent a significant shift on July 13, when a New York federal judge dismissed a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against it. Further cementing its position, a California judge ruled that XRP is not a security. In an interesting turn of events, the SEC did not oppose this statement during their quest for an interlocutory appeal.
Despite this, the ongoing lawsuit between the SEC and Ripple, the company behind XRP, casts a shadow over the prospects of an XRP spot ETF in the U.S. The case, now progressing to the remedies phase, could see Ripple facing a penalty of up to $770 million if found in violation of securities laws for its sale of XRP to institutional customers.
Ripple, on its part, may seek to mitigate this potential penalty by offsetting it with its reasonable business expenses against the SEC’s proposed fine. The court, meanwhile, remains in deliberation over the recently proposed remedy.
The situation presents a complex landscape for potential investors and financial institutions considering the introduction of a spot XRP ETF. While XRP’s legal standing appears more secure, the ongoing legal proceedings and the substantial potential penalty pose challenges that deter major financial institutions from pursuing a spot ETF for this digital asset in the U.S. market.

Yassin Mobarak questions lack of XRP spot ETF amid legal clarity

Cryptopolitan_News

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