Following the recent approval of several spot Bitcoin ETFs, there has been growing speculation about the future of other crypto ETFs, including Ripple. However, according to Bloomberg’s ETF analyst James Seyffart, it is unlikely that a spot Ripple exchange-traded fund (ETF) will be launched this year.
In an interview with Thinking Crypto, Seyffart shared his perspective on the potential debut of a spot Ripple ETF in 2024. He explained that due to regulatory challenges, spot Ripple (XRP) products may not be introduced to the ETF market in the near future.
The ongoing lawsuit between Ripple and the US Securities and Exchange Commission (SEC) is the primary hurdle to the approval of a spot Ripple ETF, according to Seyffart. Despite a slim chance of approval, he believes the possibility of a spot Ripple ETF this year is unlikely.
“That’s not happening this year unless the court case is completely done. There’s still challenging this in court. It’s not completely done. The SEC is literally fighting against Ripple in court,” Seyffart stated.
The Ripple-SEC case is nearing its conclusion. The final trial is scheduled for April 23, with both parties adhering to the necessary procedures. The final motion on remedies litigation is expected on April 29. This means each party will request the legal remedies, such as financial compensation or injunctions against certain actions, that they want the court to order if they win the lawsuit.
Seyffart emphasized the importance of the regulatory infrastructure in increasing the likelihood of approval for spot Bitcoin and Ethereum ETFs. He specifically highlighted the regulated futures trading of Bitcoin on the Chicago Mercantile Exchange (CME), which is supervised by the Commodity Futures Trading Commission (CFTC).
“Why I think we’ll get Ethereum is that 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.”
Seyffart noted that similar support for Ripple was not available. He suggested a cautious timeline of 2025 or later for spot XRP ETFs, depending on the court’s decision on Ripple’s legal status. Furthermore, he noted that, except for Bitcoin and Ethereum, other cryptocurrencies may require significant legislative or administrative changes to be approved.
“For the most part is, anything other than Bitcoin or Ethereum, we likely need a little act of Congress, or like a change of administration, or some serious big-time court decision,” Seyffart stated.
Seyffart also dismissed the idea that futures ETFs pave the way for spot ETFs. He clarified that futures products currently offer the best chance, but not a guaranteed ticket, for spot ETF approval.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | James Seyffart |
| Companies | Bloomberg, Commodity Futures Trading Commission, Chicago Mercantile Exchange, US Securities and Exchange Commission, Thinking Crypto |
| Currencies | Bitcoin, Ethereum, XRP |
| Securities | None |
