XRP ETF: Calacanis Warns of Market Threat Amid High Approval Odds

XRP, the native cryptocurrency of the Ripple network, has been a subject of debate in the crypto community due to its perceived high level of centralization. This centralization has raised concerns about the potential risks associated with an announcement of an XRP Exchange-Traded Fund (ETF).

Jason Calacanis, a prominent angel investor, has expressed his concerns about the potential impact of an XRP ETF on the market. He believes that the centralized nature of XRP could pose a threat to the market, despite its limitless potential. Calacanis, who has invested in companies like Uber and Robinhood, argues that XRP is fundamentally different from Bitcoin, which is often seen as the gold standard in the crypto world.

The potential approval of spot XRP ETFs has generated significant buzz in the market. Investors are hoping that this could lead to a surge in trading volumes and make XRP one of the most phenomenal tokens in the crypto space. However, Calacanis predicts that the launch of XRP's ETF could be a major offsetting event in the crypto market, unsettling stable and rising tokens.

The market is currently flooded with a multitude of startups, and the traction for a possible ETF is already notable. Institutional investors are already selling a significant portion of their tokens to clear funds and buy as many ETFs as they can. However, this drive could lead to a genuine avalanche in the market, with insiders capturing most of the tokens as soon as the ETF launches. Retail investors may be discouraged from placing bets on newcomers in the future.

Despite these concerns, the odds of XRP ETF getting a spot approval this year are high, with Polymarket users estimating a 78% chance. However, the centralization issue remains a significant point of criticism for XRP. Ripple's CEO has declared that they hold around $100 billion worth of XRP tokens, which could attract large-scale investors and potentially exacerbate the centralization issue.