Spot XRP ETF: Futures ETF Is Not Required For Approval Says Bloomberg Analysts
The crypto market anticipates a spot XRP ETF after the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in mid-January, setting the stage for potential approval of spot Ethereum ETFs. Moreover, Ripple’s hiring for a senior manager role in the institutional Decentralized Finance (DeFi) space and hints from Bitcoin ETF issuers are considered a preparatory move for XRP ETF.
ETF Analysts Clear the Air on Spot XRP ETF Requirements
Reacting to an X post with a Grok AI chatbot’s response that a spot XRP ETF will not require approval of a futures ETF, Fox Business journalist Eleanor Terrett asked Bloomberg ETF analysts Eric Balchunas and James Seyffart whether a futures ETF is necessary for a spot ETF approval.
Eleanor Terrett asserts the CME Bitcoin futures market as a surveillance tool was one of the key reasons behind the SEC’s spot Bitcoin ETF approval.
Bloomberg ETF analyst James Seyffart said, “A futures ETF is not required.” However, a regulated market is an essential parameter for the SEC when deciding to approve any ETFs. The CME Bitcoin futures market is indeed a surveillance tool for spot Bitcoin ETF.
Financial expert Scott Johnsson also agreed with James Seyffart that “You need a futures market, not necessarily a futures ETF.” Moreover, he explained that a futures ETF helps add liquidity to the futures market, improving trading activity and correlation with spot prices that boosts probabilities for a spot ETF.
Also Read: Chinese Fund Giant Harvest Submits Spot Bitcoin ETF Application to Hong Kong SEC
Will SEC Approve a Spot XRP ETF?
Despite Ripple’s partial win against the SEC as Judge Analisa Torres ruled that XRP is not a security, a potential approval of a spot Bitcoin ETF seems unlikely. A ruling on the institutional sale of XRP is still pending before the court.
Bloomberg analysts explained earlier that XRP is not going to get through the SEC’s door. It needs a CME XRP market or Congress-passed market structure and products, with XRP still not on the first step. The crypto market to keep an eye on the SEC’s decision on Ethereum ETFs.
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