Futures ETF Not Required for Approval, Bloomberg Analyst Says
The crypto market is expecting a spot XRP ETF after the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in mid-January, setting the stage for the potential approval of spot Ethereum ETFs. Additionally, ripple‘s hiring for a senior executive role in corporate Decentralized Finance (DeFi) and hints from Bitcoin ETF issuers are considered a preparatory move for the XRP ETF.
ETF Analysts Quickly Explain XRP ETF Requirements
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Eleanor Terrett argues that the CME Bitcoin futures market as a surveillance tool was one of the key reasons behind the SEC’s approval of the spot Bitcoin ETF.
Bloomberg ETF analyst James Seyffart “There is no need for a futures ETF,” he said. However, a regulated market is an important parameter for the SEC when deciding to approve any ETF. The CME Bitcoin futures market is really a custody vehicle for the spot Bitcoin ETF.
Finance expert Scott Johnson also with James Seyffart “You need the futures market, not necessarily the futures ETF.” He also explained that the futures ETF helps add liquidity to the futures market, improving trading activity and correlation with spot prices increases the possibility of a spot ETF.
Also Read: Chinese Fund Giant Harvest Submits Spot Bitcoin ETF Application to Hong Kong SEC
Will SEC Approve Spot XRP ETF?
Despite Ripple‘s partial victory against the SEC, with Judge Analisa Torres ruling that XRP is not a security, the potential approval of a spot Bitcoin ETF remains unlikely. The decision regarding the institutional sale of XRP is still pending before the court.
Bloomberg analysts had previously announced that XRP would not be able to pass through the SEC’s door. It needs a CME XRP market or a market structure and products accepted by Congress, XRP is still not at the first step. The crypto market will follow the SEC’s decision regarding Ethereum ETFs.
Also Read: Top Analyst Predicts solana (SOL) Price Will Reach $113 Soon
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Varinder has 10 years of experience in the Fintech industry and has been dedicated to blockchain, crypto and Web3 development for over 5 years. A tech enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles, and articles. Varinder believes in the great potential of future innovative technologies with parofix Media. He currently covers the latest updates and developments in the crypto industry.
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