Unlikely Launch of XRP ETF in 2024
According to James Seyffart, a research analyst at Bloomberg Intelligence, it is highly unlikely that a spot XRP ETF will be launched in the United States by the end of 2024. This is due to several important factors, including the ongoing lawsuit between Ripple and the US Securities and Exchange Commission (SEC), which creates uncertainty around XRP’s status. Unlike Bitcoin and Ethereum, which already have futures ETFs in America, Ripple does not have the same regulatory framework in place:
“We have futures already trading in the CME that are regulated by the CFTC, which is a regulated market, and then we have the futures ETFs, which also are kind of like pushing this thing along as well. We don’t have any of that for Ripple.”
Seyffart believes that 2025 is a more realistic target for the launch of a spot XRP ETF in the US, assuming there are improvements in the regulatory environment.
Upcoming Developments in Ripple-SEC Lawsuit
The legal battle between Ripple and the SEC is approaching its final stages, with a grand trial scheduled for April 23, 2024. Ripple has secured three partial victories so far, giving them an advantage. Both parties must follow necessary procedures before the court meeting. The SEC needs to file its remedies brief by March 13, 2024, while Ripple must file its opposition by April 12, 2024.
The outcome of this case is highly anticipated as a win for Ripple could boost the entire market and increase industry legitimacy. On the other hand, a victory for the SEC could negatively impact the sector and result in stricter regulations that hinder investor interest.
Hot Take: Slim Chance for XRP ETF in 2024
Based on the analysis by James Seyffart of Bloomberg Intelligence, the chances of a spot XRP ETF launching in the US in 2024 are slim. The ongoing Ripple-SEC lawsuit and the lack of regulatory frameworks for XRP contribute to this improbability. Seyffart suggests that a more realistic timeline for a potential launch would be 2025, assuming improvements in the regulatory environment. The legal battle between Ripple and the SEC is heading towards its final act, with a grand trial scheduled for April 23, 2024. The outcome of this case has significant implications for the cryptocurrency market and could either boost industry growth or lead to stricter regulations.
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