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Ripple has continued to revel within the glow of Judge Analisa Torres’ ruling in favor of the crypto firm, with many use circumstances being touted for its native token XRP. The most up-to-date use case to floor is a Spot XRP ETF, and Bloomberg analyst James Seyffart has shortly weighed in on the potential for this occurring. 

How Possible Is A Spot XRP ETF?

Seyffart, throughout an appearance on Tony Edward’s Thinking Crypto Podcast, defined that XRP would should be listed on the Chicago Mercantile Exchange (CME) earlier than the SEC can approve a Spot XRP ETF. 

This argument stems from the SEC’s requirement for a regulated market of serious dimension within the underlying asset. Relatively, exchanges trying to checklist a Spot Bitcoin ETF are, in hopes of gaining approval, counting on the truth that the CME Bitcoin futures, which occur to be a regulated market, present important dimension to supply obligatory information and insights for any spot market. 

So Seyffart additionally believes that any Spot XRP ETF utility will even want to meet the requirement of the token having a major market dimension that can be utilized to supply any information and insights wanted to stop fraud and market manipulation. To obtain this and simply get the SEC’s approval, itemizing XRP futures on a outstanding spinoff trade like CME could be the way in which to go, in his opinion. 

Despite his remarks, Seyffart isn’t so optimistic a few Spot XRP ETF launching anytime as, in accordance with him, this isn’t one thing he sees “materializing in the foreseeable future.”

Token worth continues to fall as euphoria wanes | Source: XRPUSDT on Tradingview.com

Little Or No Demand Is A Hindrance

Another notable spotlight from Seyffart’s remarks was when he steered that there was little or no demand for an XRP ETF, one thing which he believes is integral if we’re to see any ETF utility. 

However, there may be motive to imagine this assumption might not be outrightly right, as sure figures counsel an rising demand for XRP, notably amongst institutional traders. 

Last month, a report acknowledged how XRP’s gross sales had jumped considerably this 12 months, with over 2.22 billion XRP offered for the reason that starting of the 12 months. Furthermore, in accordance with a more moderen report, the token recorded an institutional influx of $0.5 million two weeks in the past.

Ripple’s XRP Ledger can be going face to face with the foremost Bitcoin and Ethereum networks, because it has recorded a rise in day by day transactions for the reason that starting of August. This report has seen it surpass market chief Ethereum by way of day by day transactions performed on each networks. 

Featured picture from iStock, chart from Tradingview.com