Prominent asset manager and ETF analyst James Seyffart says XRP ETF cannot materialize under the current SEC.
Discussions around the possibility of the crypto community seeing an XRP exchange-traded fund (ETF) have resurfaced amid a recent listing.
Notably, US-based crypto exchange Gemini listed XRP on its platform for the first yesterday, following the footstep of its rivals. The development prompted James Seyffart, a well-known ETF analyst, to share his view about a potential XRP ETF.
In the recent tweet, Seyffart noted that he had been inundated with questions about an XRP ETF coming to fruition. The prompting factor is that XRP is the only altcoin with a clear regulatory status in the United States.
However, the ETF analyst expressed skepticism about an XRP ETF coming to live under the current US regulatory framework. In his words:
“Don’t think there’s enough to launch an XRP ETF with this SEC.”
Gemini following @coinbase and listing #XRP. Been asked a few times in last few weeks about an XRP ETF. Don't think there's enough to launch an XRP ETF with this SEC. And there seems to be essentially zero demand from issuers to try https://t.co/t3PQeqbKvI
— James Seyffart (@JSeyff) August 10, 2023
No Demand for XRP ETF
Furthermore, Seyffart argued that issuers appear to have minimal interest in pursuing the creation of an XRP ETF. He noted that the situation is so given that issuers get practically no demand for such an investment vehicle.
“…there seems to be essentially zero demand from issuers to try,” he remarked.
XRP in Basket ETF?
Meanwhile, one commentator, Colin, suggested that the best-case scenario for XRP might involve its inclusion within a basket ETF.
For context, a basket ETF tracks a collection of cryptocurrencies rather than just one digital asset. This technique allows investors to gain exposure to various cryptocurrencies without buying and managing them individually.
Colin expressed that focusing on ETFs of leading cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC) is sufficient for the crypto community. He humorously mentioned the possibility of considering a Dogecoin (DOGE) ETF.
Notably, the US regulator has recently seen a surge in Ethereum-based ETF, as The Crypto Basic disclosed in a recent report. In particular, six applications were submitted to the SEC early this month. This development is one of the contributing factors behind discussions surrounding an XRP ETF.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
