Bloomberg Analyst Reveals Why An XRP ETF Will Not Be Approved In 2024

Bloomberg analyst James Seyffart recently shared his thoughts on whether or not an XRP ETF could launch this year. This comes following Valkyrie’s Chief Investment Officer (CIO), Steven McClurg’s comment that approval of the Spot Bitcoin ETFs could open the door for XRP ETF filings. 

Can An XRP ETF Launch This Year?

During an interview with Thinking Crypto host Tony Edward, Seyffart stated that he doesn’t see that happening this year when quizzed about the possibility of an XRP ETF launching this year. He alluded to the SEC’s case against Ripple as one of the reasons for his position and suggested that an XRP ETF could only come when that is done. 

The Bloomberg analyst also reiterated a point he made during an earlier appearance on the Thinking Crypto podcast. Seyffart suggested that there will need to be XRP futures trading on the Chicago Mercantile Exchange (CME) before the SEC can consider any applications for a Spot XRP ETF. An XRP futures ETF will also be an added advantage, he hinted. 

The SEC has, for the longest time, been skeptical about Spot ETFs that revolve around crypto assets as the Commission believes they can be easily manipulated. That explains why Seyffarf believes that XRP futures need to be first traded on a regulated market like the CME. That way, the SEC won’t be able to deny a Spot XRP ETF since the court already ruled that the futures and Spot market are correlated. 

Bulls take control of price | Source: XRPUSD on Tradingview.com

What Next Following Spot Bitcoin ETFs Approval

Following months of anticipation, the SEC finally approved the multiple Spot Bitcoin ETF applications. With that out of the way, eyes will likely turn to the Ethereum Spot ETF applications, which are next in line for an approval order. Seyffart mentioned during his interview that he believes that these ETFs are likely to be approved this year.

His belief stems from the fact that he views Bitcoin and Ethereum as being on a similar pedestal, considering that there are also Ethereum futures trading on the CME. Ethereum futures ETF also launched last year. Therefore, there is no reason why the SEC should deny the pending Ethereum Spot ETF applications.

At the moment, there are seven pending applications filed by prominent financial institutions, including the world’s asset manager, BlackRock. Similarly to how the Spot Bitcoin ETF applications were handled, the SEC could hold off on an approval order until the final deadline. If so, this approval won’t come until May 23rd, which is the final deadline for a decision on VanEck’s Ethereum Spot ETF.  

The market already seems to be turning its attention to Ethereum in anticipation of this event. ETH rose to as high as $2,600 on the back of the Spot Bitcoin ETF approval order.

Featured image from NewsBTC, chart from Tradingview.com