Could an XRP ETF Launch This Year?
In a recent interview, Bloomberg analyst James Seyffart discussed the possibility of an XRP ETF launching this year. However, he expressed skepticism, citing the ongoing SEC case against Ripple as a major obstacle. Seyffart believes that an XRP ETF can only be considered once the case is resolved.
Seyffart also emphasized the importance of XRP futures trading on the Chicago Mercantile Exchange (CME) before the SEC can entertain any applications for a Spot XRP ETF. He suggested that having an XRP futures ETF would further strengthen the chances of approval.
The Role of XRP Futures Trading
The SEC has long been wary of Spot ETFs tied to cryptocurrency assets due to concerns about market manipulation. Seyffart argues that for a Spot XRP ETF to be approved, XRP futures must first be traded on a regulated exchange like the CME. This way, the SEC cannot deny the correlation between futures and spot markets, as ruled by the court.
What’s Next after Spot Bitcoin ETF Approval?
With the recent approval of multiple Spot Bitcoin ETFs by the SEC, attention now turns to Ethereum Spot ETF applications. Seyffart believes that these applications are likely to be approved this year since Ethereum is seen as being on a similar level as Bitcoin in terms of market stature. Additionally, there are already Ethereum futures trading on the CME and an Ethereum futures ETF launched last year.
There are currently seven pending Ethereum Spot ETF applications filed by major financial institutions like BlackRock. The SEC could potentially delay approval until the final deadline, which falls on May 23rd for VanEck’s Ethereum Spot ETF decision.
Market Anticipation and Impact on Ethereum
The market is already showing anticipation for the potential approval of Ethereum Spot ETFs. Ethereum’s price rose to $2,600 following the approval of the Spot Bitcoin ETFs, indicating investor optimism about the future of Ethereum ETFs.
Hot Take: XRP ETF Approval Hinges on SEC Case and Futures Trading
James Seyffart, a Bloomberg analyst, believes that an XRP ETF is unlikely to launch this year due to the ongoing SEC case against Ripple. He argues that resolution of the case is necessary for any XRP ETF consideration. Additionally, Seyffart emphasizes the importance of XRP futures trading on regulated exchanges like the CME before the SEC can approve a Spot XRP ETF. This requirement aims to address concerns about market manipulation and establish a correlation between futures and spot markets.
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