In a noteworthy stride towards crypto innovation, Bitwise, a prominent asset manager, has officially submitted an initial registration statement to the U.S. Securities and Exchange Commission (SEC) for its proposed spot XRP ETF. This filing, confirmed on September 30, puts to rest the swirling speculations surrounding Bitwise’s strategic initiative.
XRP ETF Applications Gain Momentum
The journey toward an approved XRP ETF is laden with complexities and regulatory hurdles. While Bitwise has made a significant leap forward, obtaining the SEC’s approval is far from assured. The stringent standards set by the SEC pose formidable challenges that every aspiring XRP ETF must overcome.
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Recent developments in the cryptocurrency ETF landscape have highlighted the SEC’s cautious stance. Applications for Solana-linked ETFs were recently withdrawn, reflecting concerns over Solana’s legal status. Despite these setbacks, Bitwise’s CEO Hunter Horsley remains optimistic about the potential of XRP as a viable investment vehicle.
“XRP is one of the most enduring, well-known assets in the space and is also recognized among mainstream investors,” Horsley noted in a discussion with Fox Business. Bitwise’s mission to facilitate access to the cryptocurrency market aligns seamlessly with their latest filing for an XRP ETF.
Adding to the competitive atmosphere, Canary Capital, a nascent crypto-focused investment firm established by Steven McClurg, has also filed for an XRP ETF on September 24. This move positions Canary as a contender in the race to offer innovative investment solutions centered around XRP.
Implications of SEC’s Ripple Lawsuit
The regulatory status of XRP has been a contentious topic, particularly in light of the SEC’s 2020 lawsuit against Ripple. The agency accused Ripple of conducting “unregistered securities offerings” through XRP sales. A recent legal ruling granted Ripple a partial victory, clarifying that only institutional sales were classified as securities. This decision carries profound implications for XRP’s future, especially with the SEC’s October 7 deadline to appeal looming.
Prominent Pro-XRP attorney Fred Rispoli has expressed that the likelihood of an SEC appeal is greater than letting the case conclude without further legal action. Rispoli emphasized the potential precedent-setting nature of this case, which could influence the landscape of future cryptocurrency sales. This scenario could impact not only Bitwise’s XRP ETF application but also similar efforts by other institutions to offer XRP-based investment vehicles.
Such developments echo the recent advancements in Bitcoin and Ethereum Spot ETF markets, which have already garnered approval and launched earlier this year. The world’s leading asset managers are actively participating in these markets, indicating a growing trend towards mainstream adoption and investment in cryptocurrencies.
XRP Price Analysis
Despite the exciting prospects of an XRP ETF, the token’s market value has not mirrored the enthusiasm among investors. XRP has experienced a 7% decline within a 24-hour period, trading at $0.578. Nevertheless, the cryptocurrency retains some of its prior month’s gains, showcasing a 5% increase over the same timeframe.
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Yet, XRP’s annual growth remains modest at 10%, underscoring the absence of strong catalysts and bullish momentum for significant recovery. The disparity between XRP’s current trading price and its all-time high of $3.040, achieved in January 2018, is a stark 82% gap.
However, a decisive victory for Ripple, coupled with institutions following Bitwise’s lead in launching an XRP ETF, could catalyze a positive shift in XRP’s market dynamics. Such an outcome might bolster investor confidence, potentially setting the stage for a bullish outlook as the year unfolds.
