Will Spot Ripple (XRP) ETF be in the US in 2024? Bloomberg Expert Discusses

[Eamon]

Will Spot ripple (XRP) ETF be in the US in 2024? Bloomberg Expert Discusses


TL;DR

• Bloomberg Intelligence’s James Seyffart thinks the chances of a spot XRP ETF launching in the US during 2024 are slim.
• The ongoing Ripple-SEC litigation and the lack of regulatory frameworks for XRP are some of the important factors.
• The major lawsuit between Ripple and the SEC is scheduled for April 2024.

‘I think there will be no shot in 2024’


James Seyffart – research analyst at Bloomberg Intelligence – believes Considering several important factors, it is highly unlikely that a spot XRP ETF will launch in the United States before the end of this year.

First, he named the ongoing lawsuit between Ripple and the US Securities and Exchange Commission (SEC), which still triggers uncertainty regarding the status of the cryptocurrency.

He then reminded that there are already Bitcoin and Ethereum futures ETFs in the United States, which pave the way for the approval of spot funds. But this is not the case for Ripple (XRP):

“We have futures contracts on CME that are regulated by the CFTC, which is already a regulated market, and we also have futures ETFs that are kind of pushing this thing forward. We don’t have any of that for Ripple.”

Seyffart thinks 2025 seems like a more realistic target for the potential launch of a spot XRP ETF in the US, assuming the regulatory environment improves.

Meanwhile, the SEC recently approved A wave of spot BTC ETF applications, including BlackRock, Fidelity, Grayscale, Bitwise, Franklin Templeton, and more. Confusion surrounding the green light triggered A significant fluctuation in Bitcoin price, which is currently trading around $46,300 (according to CoinGecko data).

Ripple v. SEC: Important Upcoming Developments


The legal struggle between the two organizations is heading towards its final act with a major hearing. planned For April 23, 2024. Looks like Ripple has the upper hand, to secure three vital (but partial) victories last year.

both sides necessary Complying with all necessary procedures before meeting in court. The SEC must submit its summary of remedies by March 13, 2024, while Ripple must file its objection by April 12, 2024.

The outcome of the case is eagerly awaited because a decisive victory for the company could trigger a general market boom and increase the legitimacy of the entire industry. On the other hand, a potential victory by the securities regulator could negatively impact the industry and lead to the implementation of strict rules that could cripple investor interest.

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