James Seyffart, a Bloomberg Intelligence analyst, stated that the likelihood of a spot XRP ETF launching in the US this year is very low, primarily due to the ongoing legal battle between Ripple and the SEC, as well as the absence of a regulatory framework for XRP. He suggests that approval for a spot XRP ETF might be possible by 2025.
Seyffart points to the existing futures ETFs for Bitcoin and Ethereum in the US, which have set a precedent for the approval of spot ETFs. However, he notes that XRP lacks a similar futures ETF, which could pave the way for a spot version.
The analyst sees a 70% chance of spot Ethereum ETFs being approved this year, following the spot Bitcoin ETFs, provided the regulatory environment improves. He adds that this could lead to a spot XRP ETF approval in 2025.
Recently, the SEC approved several spot Bitcoin ETF applications from major financial players, amidst market confusion. Bitcoin is currently trading around $46,300, and experts believe that ETF approvals could drive its price to new highs in the medium to long term.
The legal battle between Ripple and the SEC is progressing, with a significant hearing scheduled for April 23, 2024. Ripple has secured some crucial victories last year, potentially gaining an upper hand. The outcome of the case is eagerly awaited by the crypto community, especially the XRP community, as it could significantly impact the legitimacy and regulatory pressure on the entire sector.