Some crypto market analysts have weighed in on what needs to happen before National Stock Market Commission (SEC) can approve a XRP Spot ETF. Calls for this type of investment fund have grown louder since the Commission approved Bitcoin Spot ETFs.
An XRP ETF is not feasible until this happens
Sharing your opinion with CointelegraphCoinShares product manager Townsend Lansing has mentioned that a XRP ETF It was unlikely until the SEC agreed that XRP was not a security. Van Buren Capital general partner Scott Johnsson also told the news outlet that the likelihood of the Commission approving this type of fund was "very slim."
In his opinion, Gary Gensler will need to be replaced before the SEC can approve an XRP ETF. CoinShares research analyst Max Shannon also believes that it could be a long time before an XRP ETF is introduced. considering how long it took for Bitcoin Spot ETFs to be approved.
James Seyffart, Bloomberg analyst He also recently commented on whether an XRP ETF could launch soon. Then he fixed who didn't see this happening this year. He also highlighted the The SEC case against Ripple as one of the reasons for his position. He believes that an XRP ETF can only emerge when the case is closed.
Seyffart too mentioned Last year, XRP must list on the Chicago Mercantile Exchange (CME) before the SEC can approve an XRP Spot ETF. While he reiterated this point in his most recent comment, he hinted that an XRP futures ETF could be an added advantage.
Token price starts moving up | Source: XRPUSD On Tradingview.com
Why the SEC's opinion might not matter
Lansing mentioned that the SEC would have to agree that XRP was not a security before it could approve an XRP ETF. However, considering that the the court has already ruled Since the crypto token is not a security in itself, what the Commission actually thinks might not matter. As such, the regulator would be cautious about using this as a reason to deny any application.
Meanwhile, although the SEC's case against Ripple is still in court, the Commission understands that this cannot be used as a determinant in determining whether it would approve an XRP ETF. This is because Grayscale has set a precedent according to which the Commission can be dragged before the courts if it decides to act "arbitrarily and capriciously".
However, Bloomberg analyst James Seyffart is right. The SEC can easily argue that its reason for denying an XRP ETF is due to possible price manipulation. That's where trading XRP on a regulated market like the CME comes in, as the exchange can be listed on any shared surveillance agreement.
Featured image from Bitcoimagazine.nl, chart from Tradingview.com
