Teucrium’s pending XRP ETF (XXRP) launch will be the next shot of adrenaline into the crypto space. Is it really a big step forward for the little guy? Or is that simply the latest strategic ploy by Wall Street to strengthen its end of the stick? Are we ushering in a new democratization of finance, or simply opening up new frontiers where the already affluent can accrue further affluence?
ETF Access Equals Real Empowerment?
On paper, an XRP ETF looks like the sure thing for tapping into mainstream accessibility. No more clunky crypto exchanges, difficult wallet set-ups, or sleepless nights stressing about private key security. It's as easy as purchasing and selling XRP directly at the click of a button through your turnaround brokerage account. Sounds good, right?
Hold on just one minute. All this ease of access has a price. ETFs are managed by large financial institutions. They take a cut. Yet, they insist that they are doing what’s best for their investors. Their real accountability is to their shareholders, and often not to the small fry.
Think back to 2008. The housing market crashed, and who was made whole? Wall Street. On the other hand, did Main Street receive this same level of support? ETFs are not the devil incarnate. They operate in a system that has always worked best for the privileged few at the top.
Now XRP leads with a whopping ten active ETF applications in the US, this shows the institutional interest in XRP. The SEC is due to rule on Grayscale’s XRP Spot ETF application on May 22. What if they approve?
Market Depth Matters, But Who Benefits?
The case for an XRP ETF has typically been based on the depth of the XRP market. Bybit’s report notes that XRP currently has the greatest average 1% market depth compared to other leading altcoins. This, in theory, helps large institutional investors to move large amounts of XRP without affecting the price.
Here's the rub: while this benefits large traders, does it really help the average investor? This makes it very easy for Wall Street to come in and out of positions in XRP. This freedom will only exacerbate market manipulation and volatility, endangering retail investors in the process. Think about the recent crash of MANTRA’s OM token, recently crashing down such that a 90% price drop would have wiped out billions. MANTRA pointed fingers at forced liquidations, but on-chain data suggested something far more sinister: suspicious pre-crash token deposits. OKX launched an investigation. While XRP's market depth may offer some protection, it doesn't eliminate the risk of such nefarious activities.
Finally, what protections will prevent retail investors from being preyed on in the XRP ETF market? And are regulators really capable of overseeing and sanitizing potential manipulation this extensive?
Tokenization: A Future For All?
Ripple has huge expectations for the tokenized asset markets, estimating them to explode to $18.9 trillion by 2033. That's a staggering figure. And while the XRP ETF could play a role in this growth, we need to ask ourselves: who will control these tokenized assets? Or will they be distributed in a democratic way, empowering people and communities along with the planet? Or will they be allowed to become concentrated, a monopoly or cartopoly, in the hands of a few powerful corporations? This would further exacerbate the inequities we are already living.
The current economic climate is already confusing enough. US-China trade tensions and uncertainty ahead of the Federal Reserve’s next meeting on May 7 does not help that complexity. A rate cut could stoke inflation, doing even more to undermine the purchasing power of regular folks. In this environment, can we expect Wall Street to be our best advocates?
The recent surge in Bitcoin, now firmly hovering over 83,000 and nearing 90,000, has proven beyond a doubt that other systems can work. We need to be on our toes to avoid letting these systems get centralized. It’s imperative that they are made available to all — not just the well-connected or wealthy.
It's time for action. Don’t fall for the XRP ETF hype trap. Educate yourself. Join the conversation. Join us in calling for greater transparency and accountability from ETF providers and regulators. Support decentralized alternatives. Let’s create a future where crypto really does work for all of us—not just Wall Street.
