In a recent conversation on Tony Edward’s Thinking Crypto Podcast, James Seyffart, Bloomberg’s well-known exchange-traded fund (ETF) analyst, suggests that before an XRP ETF could be approved, the Chicago Mercantile Exchange (CME) needs to list XRP futures.
- Listing XRP on the CME would provide an underlying asset for an XRP ETF.
- Seyffart does not believe an XRP spot ETF will materialize in the near future.
- Clear cryptocurrency regulations are needed to make it easier for the CME to list XRP futures.
- Seyffart notes a lack of demand for an XRP ETF, which may discourage ETF issuers from supporting it.
Notably, crypto investment products focused on XRP have seen a rise in assets under management and continued inflows.
Investors have increased their bets on XRP following a ruling from Judge Analisa Torres, which differentiated between sales to institutional investors and on exchanges.
The SEC plans to file an “interlocutory appeal” against Judge Analisa Torres’ ruling on Ripple’s XRP sales to clarify whether they fall within the definition of securities.
Hot Take:
Although there may be potential for an XRP ETF in the future, the current lack of clear regulations and tepid demand may hinder its approval and support from ETF issuers. However, the rise in assets under management and continued inflows for XRP investment products show that there is still investor interest in the cryptocurrency.
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