Bloomberg Analyst: XRP ETFs to Face Delay in Approval Amid Ongoing Legal Battle with SEC

James Seyffart, an ETF analyst at Bloomberg, recently discussed the potential impact of Bitcoin ETFs and the strategies that different issuers might employ. In an interview with Thinking Crypto, he emphasized the importance of ticker symbols and how some ETFs are designed to be more viral and meme-oriented, while others take a more traditional approach, targeting the older demographic often referred to as “Boomers.”

Seyffart cautioned against favoritism among these ETFs, noting that some may have to close within the next 12 to 24 months. He also highlighted the significance of partnerships with major financial institutions like JPMorgan, Goldman Sachs, and Jane Street, as their involvement adds credibility and contributes to the efficiency and liquidity of the ETFs.

Regarding speculation about whether ETF filers have already been accumulating Bitcoin, Seyffart clarified that, due to the nature of cash creation in ETFs, they cannot transfer existing Bitcoin into the ETFs. However, he anticipated that significant buying would likely occur on the first days of trading once the ETFs are approved.

When it comes to the possibility of Ethereum or XRP ETFs, Seyffart indicated that Bitcoin and Ethereum have an advantage due to the existence of regulated futures markets. He expressed skepticism about XRP receiving approval in 2024, citing ongoing legal challenges.

“I’ve been telling everyone that Bitcoin and Ethereum are in a league of their own when it comes to the possibility of approval this year. The only remote possibility would be XRP, but I don’t think that’s happening this year unless the court case is completely resolved. Currently, the court case is ongoing, and the SEC is actively fighting against Ripple,” he explained.