Despite the recent approval of several spot Bitcoin ETFs, the launch of a spot Ripple exchange-traded fund (ETF) this year is unlikely, according to Bloomberg’s ETF analyst James Seyffart. In an interview with Thinking Crypto, Seyffart expressed his views on the potential arrival of a spot Ripple ETF in 2024, citing regulatory challenges as the main reason for the delay.
The ongoing lawsuit between Ripple and the US Securities and Exchange Commission (SEC) is a significant hurdle to the approval of a spot Ripple ETF. Seyffart stated, “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.”
The Ripple-SEC case is nearing its conclusion, with the final trial set for April 23 and the final motion on remedies litigation expected on April 29. This will allow each party to request the legal remedies they want the court to order if they win the lawsuit.
Seyffart highlighted the role of regulatory infrastructure in increasing the likelihood of approval for spot Bitcoin and Ethereum ETFs. He emphasized the regulated futures trading of Bitcoin on the Chicago Mercantile Exchange (CME), overseen by the Commodity Futures Trading Commission (CFTC). However, he pointed out 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. He also noted that, except for Bitcoin and Ethereum, other cryptocurrencies may require significant legislative or administrative changes to be approved.
Seyffart 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 | Thinking Crypto, Commodity Futures Trading Commission, Chicago Mercantile Exchange, US Securities and Exchange Commission |
| Currencies | Bitcoin, Ethereum, XRP |
| Securities | None |
