How Possible Is A Spot XRP ETF?
– XRP would need to be listed on the Chicago Mercantile Exchange (CME) before the SEC can approve a Spot XRP ETF.
– The SEC requires a regulated market of significant size in the underlying asset for approval.
– Listing XRP futures on a prominent derivative exchange like CME would fulfill this requirement and increase the chances of SEC approval.
– Bloomberg analyst James Seyffart believes that a Spot XRP ETF is unlikely to launch in the foreseeable future.
Little Or No Demand Is A Hindrance
– Seyffart suggests that there is little or no demand for an XRP ETF, which is necessary for any application.
– However, reports indicate increasing demand for XRP, particularly among institutional investors.
– XRP sales have jumped significantly this year, with over 2.22 billion XRP sold.
– The token has recorded an institutional inflow of $0.5 million two weeks ago.
– Ripple’s XRP Ledger has surpassed Ethereum in daily transactions since August.
Hot Take
While there are potential hurdles to overcome, such as listing XRP on the CME and demonstrating demand, the increasing sales and institutional inflow of XRP suggest that there is a market for an XRP ETF. If Ripple can address these challenges and meet the SEC’s requirements, a Spot XRP ETF could become a reality in the future.
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