Ripple News : XRP ETF’s Fate Linked to CME XRP Futures, Bloomberg ETF Analyst Explains

As the crypto community eagerly waits for an Exchange Traded Fund (ETF) centered around XRP, Bloomberg’s well-regarded ETF expert, James Seyffart, drops a pivotal insight. According to him, the success of such an ETF largely depends on XRP’s presence in a specific derivative exchange.

Setting the Ground for XRP ETF

Seyffart points to a major player in the derivative exchange landscape: the Chicago Mercantile Exchange (CME). For the much-anticipated XRP ETF to stand a chance at regulatory approval, he thinks that XRP futures would need a listing on CME first. This step is essential as the ETF would demand a primary asset to reflect, and listing XRP on CME would seamlessly bridge this requirement.

Seyffart further expresses skepticism regarding the chances of regulatory green-lighting of a spot XRP ETF in the foreseeable future.

Awaiting Clarity from Congress

The broader message from Seyffart calls for enhanced clarity on the regulatory front. It’s evident that the legislative ecosystem needs to be more decisive and should play a pivotal role in shaping the direction. Seyffart emphasizes that without a legislative framework in place, the ambiguity around cryptocurrency, especially XRP, is likely to persist.

SEC’s Skeptical Stance

A major challenge lies in the Securities and Exchange Commission’s (SEC) prevailing apprehension towards cryptocurrencies, particularly XRP. Coupled with the ongoing legal tussle between the SEC and Ripple, Seyffart feels the environment isn’t conducive for the launch of an XRP ETF. Furthermore, he observes an apparent lack of interest among issuers in pursuing this course of action.

Current XRP Market Movement

To provide a snapshot of XRP’s current position in the market, the token’s price is pegged at $0.62, reflecting a modest uptick of 0.12% within the last day. However, over the preceding week, it faced a slight dip, recording a decline of 2.1%.