Ripple has continued to revel within the glow of Judge Analisa Torres’ ruling in favor of the crypto firm, with many use circumstances being touted for its native token XRP. The most up-to-date use case to floor is a Spot XRP ETF, and Bloomberg analyst James Seyffart has shortly weighed in on the opportunity of this occurring.
How Possible Is A Spot XRP ETF?
Seyffart, throughout an appearance on Tony Edward’s Thinking Crypto Podcast, defined that XRP would should be listed on the Chicago Mercantile Exchange (CME) earlier than the SEC can approve a Spot XRP ETF.
This argument stems from the SEC’s requirement for a regulated market of serious dimension within the underlying asset. Relatively, exchanges trying to listing a Spot Bitcoin ETF are, in hopes of gaining approval, counting on the truth that the CME Bitcoin futures, which occur to be a regulated market, present important dimension to offer needed knowledge and insights for any spot market.
So Seyffart additionally believes that any Spot XRP ETF software may also want to meet the requirement of the token having a major market dimension that can be utilized to offer any knowledge and insights wanted to stop fraud and market manipulation. To obtain this and simply get the SEC’s approval, itemizing XRP futures on a distinguished by-product alternate like CME could be the best way to go, in his opinion.
Despite his remarks, Seyffart isn’t so optimistic a couple of Spot XRP ETF launching anytime as, in accordance with him, this isn’t one thing he sees “materializing in the foreseeable future.”
Token value continues to fall as euphoria wanes | Source: XRPUSDT on Tradingview.com
Little Or No Demand Is A Hindrance
Another notable spotlight from Seyffart’s remarks was when he urged that there was little or no demand for an XRP ETF, one thing which he believes is integral if we’re to see any ETF software.
However, there’s cause to consider this assumption will not be outrightly right, as sure figures recommend an rising demand for XRP, notably amongst institutional buyers.
Last month, a report said how XRP’s gross sales had jumped considerably this yr, with over 2.22 billion XRP bought because the starting of the yr. Furthermore, in accordance with a more moderen report, the token recorded an institutional influx of $0.5 million two weeks in the past.
Ripple’s XRP Ledger can be going face to face with the foremost Bitcoin and Ethereum networks, because it has recorded a rise in each day transactions because the starting of August. This file has seen it surpass market chief Ethereum by way of each day transactions carried out on each networks.
Featured picture from iStock, chart from Tradingview.com
