{"id":237568,"date":"2024-01-29T12:49:34","date_gmt":"2024-01-29T07:19:34","guid":{"rendered":"https:\/\/dripp.zone\/news\/futures-etf-is-not-required-for-approval-says-bloomberg-analyst-crypto-news\/"},"modified":"2024-01-29T12:49:36","modified_gmt":"2024-01-29T07:19:36","slug":"futures-etf-is-not-required-for-approval-says-bloomberg-analyst-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/futures-etf-is-not-required-for-approval-says-bloomberg-analyst-crypto-news\/","title":{"rendered":"Futures ETF Is Not Required For Approval, Says Bloomberg Analyst – Crypto News"},"content":{"rendered":"

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The crypto market anticipates a spot XRP ETF after the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in mid-January, setting the stage for potential approval of spot Ethereum ETFs. Moreover, Ripple\u2019s<\/a> hiring for a senior manager role in the institutional\u00a0Decentralized Finance (DeFi) space and hints from Bitcoin ETF issuers<\/a> are considered a preparatory move for XRP ETF.<\/p>\n

ETF Analysts Clear the Air on Spot XRP ETF Requirements<\/h2>\n

Reacting to an X post with a Grok AI chatbot\u2019s response that a spot XRP ETF will not require approval of a futures ETF, Fox Business journalist Eleanor Terrett<\/a> asked Bloomberg ETF analysts Eric Balchunas and James Seyffart whether a futures ETF is necessary for a spot ETF approval.<\/p>\n

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Eleanor Terrett asserts the CME Bitcoin futures market as a surveillance tool was one of the key reasons behind the SEC\u2019s spot Bitcoin ETF approval.<\/p>\n

Bloomberg ETF analyst James Seyffart<\/strong> said, \u201cA futures ETF is not required.\u201d However, a regulated market is an essential parameter for the SEC when deciding to approve any ETFs. The CME Bitcoin futures market is indeed a surveillance tool for spot Bitcoin ETF.<\/p>\n

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Financial expert Scott Johnsson<\/strong> also agreed with James Seyffart that \u201cYou need a futures market, not necessarily a futures ETF.\u201d Moreover, he explained that a futures ETF helps add liquidity to the futures market, improving trading activity and correlation with spot prices that boosts probabilities for a spot ETF.<\/p>\n

Also Read: Chinese Fund Giant Harvest Submits Spot Bitcoin ETF Application to Hong Kong SEC<\/a><\/strong><\/p>\n

Will SEC Approve a Spot XRP ETF?<\/h2>\n

Despite Ripple\u2019s partial win against the SEC as Judge Analisa Torres ruled that XRP is not a security, a potential approval of a spot Bitcoin ETF seems unlikely. A ruling on the institutional sale of XRP is still pending before the court.<\/p>\n

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Bloomberg analysts explained earlier that XRP is not going to get through the SEC\u2019s door. It needs a CME XRP market or Congress-passed market structure and products, with XRP still not on the first step. The crypto market to keep an eye on the SEC\u2019s decision on Ethereum ETFs.<\/p>\n

Also Read: Top Analyst Predicts Solana (SOL) Price To Hit $113 Soon<\/a>\u00a0<\/strong><\/p>\n

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