Insights on XRP ETF Approval
According to Bloomberg’s ETF expert James Seyffart, the approval of an Exchange Traded Fund (ETF) centered around XRP depends on its presence in a specific derivative exchange. Here are the key points:
1. XRP futures on CME: Seyffart believes that for an XRP ETF to have a chance at regulatory approval, XRP futures would need to be listed on the Chicago Mercantile Exchange (CME) first. This would fulfill the requirement of having a primary asset to reflect.
2. Skepticism around spot XRP ETF: Seyffart expresses skepticism about the approval of a spot XRP ETF in the near future. The regulatory landscape needs to provide more clarity, and without a legislative framework in place, the ambiguity around cryptocurrency, especially XRP, is likely to persist.
3. SEC’s apprehension: The Securities and Exchange Commission (SEC) has shown skepticism towards cryptocurrencies, including XRP. The ongoing legal battle between the SEC and Ripple adds to the challenging environment for launching an XRP ETF.
4. Lack of interest from issuers: Seyffart observes a lack of interest among issuers in pursuing the launch of an XRP ETF.
In conclusion, the approval of an XRP ETF depends on XRP futures being listed on CME and the regulatory environment providing more clarity. However, given the SEC’s apprehension and the ongoing legal battle, the launch of an XRP ETF may face significant challenges.
Hot Take
While many in the crypto community are eagerly awaiting an XRP ETF, Seyffart’s insights suggest that the path to approval is not straightforward. The involvement of regulatory bodies and the need for clarity in the legislative framework are crucial factors. With the current challenges surrounding XRP and its regulatory environment, it may be some time before we see an XRP ETF successfully launched.
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