XRP ETFs Will Not Be Approved This Year Due to Legal Fight With SEC – Bloomberg Analyst

2 Min Read

James Seyffart, an ETF analyst at Bloomberg, recently talked about the potential impact of Bitcoin ETFs and the strategies various issuers might employ. Seyffart noted that different ETFs are taking varied approaches to appeal to investors.

In an interview with Thinking Crypto, he opened up about the importance of ticker symbols, suggesting that some ETFs are designed to be more viral and meme-oriented, while others take a more conventional approach, targeting the older demographic often referred to as “Boomers.”

Seyffart expressed caution about picking favorites among these ETFs, saying that the possibility of some ETFs having to close within the next 12 to 24 months. Regarding active participants, he highlighted the significance of partnerships with major financial institutions like JPMorgan, Goldman Sachs, and Jane Street, stating that their involvement signifies credibility and contributes to the efficiency and liquidity of the ETFs.

Regarding the speculation around whether ETF filers have already started accumulating Bitcoin, Seyffart clarified that, due to the nature of cash creation in ETFs, they can’t transfer existing Bitcoin into the ETFs. He anticipated that significant buying would likely occur on the first days of trading once approved.

Concerning the prospect of Ethereum or XRP ETFs, Seyffart indicated that Bitcoin and Ethereum stand out due to existing regulated futures markets. He was skeptical about XRP getting approval in 2024, citing ongoing legal challenges.

“I’ve been telling everyone the way I view it is that Bitcoin and Ethereum are off on a pedestal on their own for possibly getting approved this year. The only remote possibility would, I guess, be XRP, but I don’t think that’s happening this year unless the court case is completely done. Right now, they’re still challenging this in court; it’s not completely done. The SEC is literally fighting against Ripple in court,” he said.

Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *