SBI Holdings plans to enter the US ETF market, sparking speculation of an XRP ETF due to its strong partnership with Ripple and digital asset focus.

Ripple partner SBI Holdings is making headlines as it prepares to enter the ETF market. This move has led to speculation about a potential XRP ETF, given SBI’s strong partnership and association with Ripple, a company that holds the largest share of XRP.

For instance, on July 1, SBI Holdings began minting non-fungible tokens (NFTs) for the upcoming 2025 World Expo in Osaka, Japan. SBI leaders have also consistently endorsed XRP.

Now, a local report reveals that SBI Holdings plans to establish an investment management company with Franklin Templeton, a major US investment firm. This new venture will focus on digital assets, with SBI holding a 51% stake and Franklin Templeton 49%.

【速報】SBIホールディングス、ビットコインETF参入準備　米運用大手と新会社 – 日本経済新聞

SBIホールディングス（HD）は、米運用会社大手フランクリン・テンプルトンと年内にも主にデジタル資産を取り扱う運用会社を設立する。https://t.co/OK2hMlKtof

— SOU⚡️仮想通貨 / ビットコイン (@SOU_BTC) July 25, 2024

The new company from SBI Holdings and Franklin Templeton, expected to form by the end of the year, will focus on crypto assets, reports suggest. Notably, SBI will hold 51% of the company, while Franklin Templeton will hold 49%.

Launching XRP ETF Makes Sense

In June, Ripple President Monica Long had argued that launching an XRP spot ETF in the US market makes sense.

She highlighted that XRP, consistently among the top 10 cryptocurrencies, meets key criteria for such an investment product. However, Nate Geraci, President of The ETF Store, suggested that the market is not ready for an XRP spot ETF. He noted that an XRP futures ETF must precede a spot ETF, emphasizing the need for a regulated trading history.

Industry Opinions on XRP

Recall Yoshitaka Kitao, Chairman and CEO of SBI Holdings, had shared his optimistic views on XRP’s future, expressing confidence that XRP would benefit significantly if Ripple ultimately wins its ongoing legal battle with the US Securities and Exchange Commission (SEC).

On his hand, Crypto expert The Bearable Bull predicts that XRP will hit new all-time highs this cycle. He asserts there’s “0% chance XRP won’t go to new all-time highs.” According to him, XRP’s price has often depended on Bitcoin’s rise. With the approval of a BTC ETF and new record values, he expects XRP ETFs in 2025.

The Bearable Bull identifies several bullish catalysts for XRP. These include its relisting on all exchanges, the launch of AMMs, the Xahau sidechain, Ripple’s stablecoin, and the Metaco custody solution. He also mentions a potential Ripple IPO, increased political focus on crypto, and expected regulatory clarity. Additionally, Ripple’s legal case is likely to conclude this summer.