GSR’s ETF possibility score, shared by Wu Blockchain on X, reveals significant hurdles for XRP (Ripple) in securing ETF approval. The score evaluates two crucial factors: decentralization and demand. Regulatory bodies like the SEC increasingly stress sufficient decentralization for crypto classifications, making these criteria critical.
XRP’s scores show a notable gap between decentralization and demand, resulting in a negative outlook. XRP scores -0.9 in decentralization, reflecting concerns over centralization. Ripple Labs controls a large portion of the XRP supply, contributing to these worries. In the crypto world, decentralized control is highly valued, and this centralization is viewed negatively. Regarding demand, XRP scores -0.2, indicating modest interest that fails to offset its decentralization issues. Consequently, XRP’s total score of -0.44 places it low in the ranking, suggesting minimal chances for ETF inclusion based on these criteria.
Comparative Analysis Of Other Cryptocurrencies
Other cryptocurrencies show varied potential for ETF inclusion. For example, Ethereum (ETH) leads with a score of 1.13, indicating strong decentralization and higher demand. Meanwhile, Solana (SOL) follows with a score of 0.58, reflecting a good balance between decentralization and demand. In contrast, NEAR Protocol (NEAR) remains neutral with a score of 0.00, balancing slight decentralization weaknesses with moderate demand.
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Avalanche (AVAX) and Aptos (APT) have negative total scores of -0.18 and -0.27, respectively, showing moderate decentralization but low demand. Cardano (ADA) scores -0.35, facing similar issues of low demand and decentralization. Cosmos (ATOM) scores the lowest at -0.47, indicating challenges in both areas.
Ripple’s Perspective On XRP’s Position
This analysis follows Ripple President Monica Long’s argument for launching a spot XRP ETF in the U.S. market. Long emphasized that XRP is a prominent crypto asset, consistently trading in the top 10 and currently ranking as the seventh most valuable crypto.
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Furthermore, Long noted that XRP is one of the most heavily traded assets, available on over 100 crypto exchanges, including major U.S. platforms. The July 2023 court ruling clarified that XRP itself is not a security, providing a clear regulatory status shared only with Bitcoin in the U.S.
Ripple’s CEO expressed strong confidence that ETFs for XRP, Solana, and Cardano are inevitable. In a recent interview, the CEO mentioned the potential for an XRP ETF launch as early as next year, possibly in 2025.
Overall, while XRP faces significant hurdles in decentralization and demand, Ripple remains optimistic about its future ETF prospects.
