Spot Ripple (XRP) ETF in the US in 2024? Bloomberg Expert Weighs in

TL;DR

• James Seyffart of Bloomberg Intelligence sees a slim chance of a spot XRP ETF launching in the US throughout 2024.
• The ongoing Ripple-SEC lawsuit and the absence of regulatory frameworks for XRP are some of the crucial factors.
• The grand trial between Ripple and the SEC is scheduled for April 2024.

‘I Think No Shot in 2024’

James Seyffart – research analyst at Bloomberg Intelligence –  believes launching a spot XRP ETF in the United States before this year’s end is highly improbable given several important factors. 

First, he named the ongoing lawsuit between Ripple and the US Securities and Exchange Commission (SEC), which still triggers uncertainty around the cryptocurrency’s status.

Then, he reminded that there are already futures Bitcoin and Ethereum ETFs in America, which pave the way for the approval of spot funds. However, this is not the case with Ripple (XRP):

“We have futures already trading in the CME that are regulated by the CFTC, which is a regulated market, and then we have the futures ETFs, which also are kind of like pushing this thing along as well. We don’t have any of that for Ripple.”

Seyffart thinks 2025 seems like a more realistic target for a potential launch of a spot XRP ETF in the States, assuming the regulatory environment has improved.

Meanwhile, the SEC recently  approved a wave of spot BTC ETF applications, including those of BlackRock, Fidelity, Grayscale, Bitwise, Franklin Templeton, and more. The confusion surrounding the green light triggered  significant volatility for Bitcoin’s price, which currently trades at around $46,300 (per CoinGecko’s data).

Ripple v. SEC: Important Upcoming Developments

The legal battle between the two organizations is heading towards its final act, with a grand trial  scheduled  for April 23, 2024. Ripple seemingly has the upper hand,  securing  three vital (yet partial) victories last year.

Both parties are  required  to comply with all necessary procedures before meeting in court. The SEC must file its brief with respect to remedies by March 13, 2024, while Ripple must file its opposition by April 12, 2024.

The outcome of the case is highly anticipated since a decisive win for the company could propel an overall market boom and increase the legitimacy of the whole industry. On the other hand, a potential victory for the securities regulator might negatively impact the sector and lead to the implementation of stringent rules that could impede investors’ interest.