Analysts Weigh in on Spot XRP ETF Requirements
In response to a chatbot’s statement that a spot XRP ETF would not require approval of a futures ETF, Bloomberg ETF analysts Eric Balchunas and James Seyffart were asked about the necessity of a futures ETF for spot ETF approval.
Eleanor Terrett, a journalist from Fox Business, points out that the SEC’s approval of a spot Bitcoin ETF was influenced by the CME Bitcoin futures market as a surveillance tool.
James Seyffart states that a futures ETF is not necessary for a spot XRP ETF. However, he emphasizes the importance of having a regulated market, like the CME Bitcoin futures market, for the SEC’s approval process.
Scott Johnsson, a financial expert, agrees with Seyffart and adds that while a futures ETF is not required, it can enhance liquidity in the futures market and improve trading activity and correlation with spot prices.
Prospects for Approval of Spot XRP ETF
Despite Ripple’s recent legal victory against the SEC regarding XRP’s security classification, the chances of a spot XRP ETF being approved are slim. The court has yet to rule on the institutional sale of XRP.
Bloomberg analysts previously stated that XRP would face challenges in gaining approval from the SEC. It would require the establishment of a CME XRP market or Congress passing legislation for market structure and products. Currently, XRP has not made progress towards these requirements. The crypto market should instead focus on the SEC’s decision regarding Ethereum ETFs.
Hot Take: Uncertain Future for Spot XRP ETF
The possibility of a spot XRP ETF remains uncertain despite Ripple’s legal victory. While analysts believe that a futures ETF is not required for approval, a regulated market is crucial. The SEC’s decision on a spot XRP ETF will depend on the establishment of a CME XRP market or regulatory changes by Congress. As the crypto market eagerly awaits the SEC’s decision on Ethereum ETFs, it remains to be seen whether XRP will meet the necessary requirements for an ETF approval.
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