[ccpw id="39382"]

HomeCrypto NewsMarketBloomberg ETF Analyst Says CME Must List XRP Futures Before an XRP ETF Would Launch

Bloomberg ETF Analyst Says CME Must List XRP Futures Before an XRP ETF Would Launch


Prominent Bloomberg ETF analyst James Seyffart says XRP will have to trade on CME derivative exchange before SEC can approve XRP ETF.

- Advertisement -

In a recent edition of Tony Edward’s Thinking Crypto Podcast, Bloomberg ETF analyst James shed light on the possibility of an XRP exchange-traded fund (ETF).

Particularly, Seyffart highlights conditions that must be met before the crypto community can see an XRP ETF come to fruition.

- Advertisement -

CME Listing XRP

Seyffart argued that Chicago Mercantile Exchange (CME), a prominent derivative exchange, would have to list XRP futures to set the ground for an ETF approval. The analyst expressed that CME listing XRP futures contracts will allow the US regulator to easily approve an XRP futures ETF.

This requirement is crucial as the ETF would need an underlying asset to track, with XRP on the derivative exchange filling that gap. Seyffart further mentioned the unlikelihood of the crypto community seeing a Ripple spot ETF. 

In his words:

“First of all, CME would have to list XRP futures before a futures ETF would launch. And I can’t imagine them allowing a spot Ripple ETF anytime soon.”

- Advertisement -

Congress Needs to Come in

Notably, this view from the ETF analyst comes after he noted earlier that the Securities and Exchange Commission (SEC) cannot approve an XRP ETF.

As The Crypto Basic reported, the basis of Seyffart’s argument was that the current regulatory framework cannot accommodate an XRP ETF. He further buttressed this point in the podcast. 

The Bloomberg analyst noted that the back and forths will linger unless the US Congress issues laws specific to cryptocurrencies. He remarked:

“Basically what it needs to happen and we keep going back, we need clarity. Congress needs to come in and issue laws.”

Chiefly, laws providing clarity for crypto make it easier for exchanges like CME to list XRP futures for the ultimate SEC ETF approval.

Meanwhile, Seyffart has also mentioned that there is practically zero demand for an XRP exchange-traded fund. Given no demand, ETF issuers are also unmotivated to make an XRP ETF move.

Follow Us on Twitter and Facebook.

Disclaimer: 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’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Abdulkarim Abdulwahab
Abdulkarim Abdulwahabhttp://thecryptobasic.com
Abdulkarim Abdulwahab is a blockchain writer with a specific interest in journalistic writing. He covers breaking events in the crypto community and blockchain industry. Over the past year, he has published over 1,500 short-form and long-form content for Web3 publishing firms.

More from Author