How can Ripple launch its own ETF?

Following the successful launch of spot bitcoin ETFs this month, analysts are expecting similar product approvals for other cryptocurrencies such as Ethereum (ETH) and Ripple (XRP).

Currently, the probability of Ripple ETF approval is very low; However, analysts have proposed solutions to increase this possibility.

Fox Business journalist Eleanor Terrett examines the regulatory landscape surrounding XRP and outlines the prerequisites for approval of a spot ETF fund for this digital currency.

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Beginning

He believes that the introduction of the XRP futures ETF fund is a necessary step before the introduction of the spot ETF fund of this digital currency. According to him, regulatory bodies such as the US Securities and Exchange Commission (SEC) consider the existence of the futures market of an asset in the Chicago Mercantile Exchange (CME) sufficient to monitor against fraud and manipulation.

This was exactly the path asset management companies took to offer the Bitcoin Spot ETF. Bloomberg Intelligence analyst James Seyffart expressed a similar opinion earlier this month.

All eyes are now on the ongoing legal battle between the SEC and Ripple over the sale of XRP to organizations, which the court considers a securities transaction.

The decision on this matter will be issued in the final session of this year's court in April 2024. The provision of XRP spot ETF is subject to the court ruling that any transaction of this digital currency does not include the purchase and sale of securities.