The world of cryptocurrency is buzzing with the latest development: the Bitwise XRP ETF filing has officially gone live on the US Securities and Exchange Commission (SEC) website. This groundbreaking application, a pioneer in its category, aims to provide institutional investors with a structured pathway to gain exposure to XRP, should it receive approval.
Bitwise XRP ETF Now Displayed on SEC Website
Renowned asset manager Bitwise has taken a significant step by filing Form S-1 for its Bitwise XRP ETF. This filing marks the beginning of their ambitious journey to introduce a Spot XRP ETF. The proposed fund is designed to hold XRP directly, thereby granting investors a seamless opportunity to engage with the crypto token via the securities market. This ETF would mirror the mechanisms of the Spot Bitcoin and Ethereum ETFs, which received approval earlier this year.
According to Bitwise’s press release, the official launch of this fund hinges on the successful activation of Form S-1, in addition to the approval of Form 19b-4 filing. Notably, no exchange has yet filed the 19b-4, which is crucial for registering a rule change, enabling exchanges to offer the XRP ETF on their platforms.
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In discussing the S-1 application, Bitwise emphasized XRP’s status as a resilient crypto asset that commands significant interest from investors. This strong demand was a key factor in their decision to pursue the first-ever XRP ETF. Bitwise is already a well-established entity in the crypto sphere, with existing Spot Bitcoin and Ethereum ETFs enhancing their reputation.
The submission of Bitwise’s S-1 form holds considerable weight, as it reflects their alignment with Judge Analisa Torres’ decision that XRP does not qualify as a security. However, the ultimate approval of the fund is contingent upon whether the SEC aligns with this perspective. In recent developments, the Commission denied the 19b-4 applications for the Spot Solana ETF due to ongoing concerns regarding SOL’s legal status.
Industry Experts Weigh In on Approval Prospects
Industry experts, including Bloomberg analyst Eric Balchunas and Nate Geraci, President of the ETF Store, have shared their insights regarding the potential for approval. They suggest that an approval is unlikely to materialize before the conclusion of the US elections. Meanwhile, Alex Thorn, Head of Firmwide Research at Galaxy Digital, has asserted that the likelihood of approval diminishes entirely if the SEC decides to appeal its case against Ripple.
SEC’s Appeal Against Ripple: Implications for the ETF
The SEC has recently filed a notice of appeal in its ongoing case against Ripple, signaling the Commission’s intent to challenge Judge Torres’ ruling that XRP is not a security, as well as the $125 million penalty imposed on Ripple. As Alex Thorn anticipated, this appeal significantly reduces the probability of the Bitwise XRP ETF receiving approval in the near future, particularly if the SEC’s case hinges on XRP’s classification as a security.
The SEC’s decision to proceed with the appeal has once again cast a shadow of uncertainty over the XRP ecosystem, leaving the cryptocurrency’s status unresolved. Ripple CEO Brad Garlinghouse has expressed the expectation that more asset managers will follow Bitwise’s lead in filing for an XRP ETF. However, given the protracted nature of the ongoing Ripple SEC lawsuit, such filings appear unlikely at present.
As the legal proceedings unfold, the market continues to closely monitor the situation, with XRP’s price fluctuations reflecting the prevailing uncertainty. This evolving scenario underscores the complex interplay between regulatory actions and market dynamics, as stakeholders await further developments in this pivotal case.
