Bitwise Asset Management Files for XRP Exchange Traded Product (ETP)
Bitwise Asset Management has recently filed for an XRP Exchange Traded Product (ETP), a move that has generated significant anticipation in the cryptocurrency community. The filing, submitted to the U.S. Securities and Exchange Commission (SEC), could significantly influence XRP’s market trajectory if it gains approval.
Details of the SEC Filing
On September 30, Bitwise submitted the Form S-1, establishing the groundwork for a potential trust entity that could underpin an XRP ETF. This filing comes at a pivotal moment, as the SEC’s decision on this matter could be a game-changer for the XRP market.
The Ripple Case and Its Impact
The SEC’s next move is crucial, especially in its ongoing legal battle with Ripple. The SEC has until October 7, 2024, to decide whether to appeal the court’s ruling in the Ripple case concerning programmatic sales of XRP. In a landmark decision in July 2023, the court ruled that these sales do not violate securities laws, a verdict that temporarily boosted XRP’s price.
Industry Reactions and Skepticism
Alex Thorn, Head of Research at Galaxy Digital, reacted to Bitwise’s XRP ETF filing, noting that the SEC’s decision to appeal is a significant factor. Thorn expressed skepticism about the ETF’s approval chances, stating that the likelihood would “drop to near zero” if the SEC decides to appeal. He remarked, “I’ll be very surprised if they don’t appeal.”
Senior ETF analyst Eric Balchunas echoed this sentiment. He commented, “Near zero if Harris wins I agree. Trump victory and anything is possible on this front.”
Market Implications of the XRP ETP Application
If approved, Bitwise’s XRP ETP application could potentially increase demand, driving the price towards the $1 mark. However, as of now, XRP is trading in the red and has fallen below the crucial $1 threshold. The SEC’s decision regarding an appeal remains a critical factor for XRP investors.
Potential Outcomes for XRP Prices
The outcome of the SEC’s decision could have significant ramifications for XRP’s market value. If the SEC decides to appeal, XRP prices could plummet to as low as $0.40. Conversely, if no appeal is made, XRP may rally towards the $1 mark, providing a potential upside for investors.
Conclusion
The upcoming SEC decision on Bitwise’s XRP ETP filing holds substantial weight for the future of XRP. Investors and market watchers are keenly observing the developments, as the SEC’s actions could either bolster or hinder XRP’s market performance. Stay tuned for updates as the October 7, 2024, deadline approaches.
