XRP surged this week as five spot ETFs went to the pre-launch list at DTCC. However, the real reason is this; that the listings are an indication of infrastructure being prepared- not that the SEC has passed anything. Similar to the case of Bitcoin ETFs in 2023, Crypto Twitter is going premature.
The Real XRP ETF Introduction Checklist.
Under new generic listing rules, spot crypto ETFs can be listed quicker by exchanges, although they still need an effective S-1 filing and an exchange listing circular. It is at this moment that the countdown to launch starts. DTCC preparedness is not a regulatory preparedness.
The Role of DTCC: To Plumb, Not Sanction.
DTCC assists in post-trade settlement, intermediation of issuers, custodians, and market participants. It establishes tickers, CUSIPs, and testing, but that does not mean approval. Furthermore, That was evident in the rush to launch Bitcoin ETF by the SEC. confuse pipes with green lights.
What’s on File Now?
In the past few weeks, Grayscale, Franklin, CoinShares, and 21Shares all submitted or revised S-1s. None has been proven to be effective, however. There are leveraged or synthetic XRP funds (e.g. ProShares, Teucrium) that do not follow the new generic pathway and must be looked into more closely.
Don’t Be Fooled by the Dashboard.
The XRP ETFs are not actual, but rather just potential until an S-1 is live and the exchange announces the launch date. The DTCC list presents preparation and not permission. However, with the approvals in place, launching might be a quick affair, within days, but not months.
