Bitwise Unveils Spot XRP ETF Filing, Price Drops 7%

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Crypto asset management firm Bitwise has taken a significant step by submitting an initial registration statement to the US Securities and Exchange Commission (SEC) on Wednesday for its spot XRP ETF. This move confirms the validity of its filing on September 30, amid widespread speculation about the initiative.

XRP ETF Applications Gather Steam

Although this is a promising start, the path to approval remains challenging. There is no guarantee that any XRP ETF will satisfy the SEC’s regulatory requirements.

Recent reports suggest that applications for Solana-linked ETFs, the fifth-largest cryptocurrency, were recently withdrawn due to SEC concerns regarding its legal status. Nevertheless, Hunter Horsley, CEO of Bitwise, remains optimistic about XRP’s potential as an investment.

“XRP is one of the most recognized and enduring assets in the crypto space, and is acknowledged among mainstream investors,” said Horsley in an interview with Fox Business. He stressed that Bitwise seeks to connect investors with opportunities in the cryptocurrency market, and the filing for a Bitwise XRP ETF fits into that vision.

In addition to Bitwise’s initiatives, Fox Business has reported that another XRP ETF application has been submitted by Canary Capital, a newly formed investment firm focusing on cryptocurrency, founded by Steven McClurg, co-founder and former chief investment officer of Valkyrie Funds. Canary’s XRP ETF was filed on September 24.

Consequences of SEC’s Ripple Lawsuit

The regulatory status of XRP has stirred debate over recent years, particularly following the SEC’s 2020 lawsuit against Ripple, which claimed that XRP sales were “unregistered securities offerings.”

A recent decision granted Ripple a partial victory, ruling that only specific sales—primarily to institutional investors—were considered securities. This ruling has major implications for XRP’s future, especially as the SEC approaches its October 7 deadline to file an appeal.

As reported by Bitcoinist earlier this week, pro-XRP attorney Fred Rispoli has suggested that the chances of an SEC appeal are greater than the likelihood of the case concluding without further action from the agency.

Rispoli pointed out the importance of this situation, noting that if the SEC opts not to appeal, it could establish a precedent that differentiates Ripple’s case from future cryptocurrency sale cases. This could have broader repercussions, not just for Bitwise’s XRP ETF application, but also for other entities looking to offer similar investment products for the token.

This scenario might resemble the recently established Bitcoin and Ethereum Spot ETF markets, approved and launched in January and July of this year, respectively, with the largest asset managers introducing these index funds to their clientele, thereby promoting the adoption of these cryptocurrencies.

XRP Price Movement

In spite of this significant development in the XRP landscape, its price has not mirrored the enthusiasm among investors, as it has tracked the broader market’s downturn with a 7% decrease over the last 24 hours, settling at $0.578.

Nevertheless, the cryptocurrency has managed to retain some of its gains from the previous month, up by 5% during this time. However, XRP has only achieved a 10% increase over the past year, underscoring a lack of catalysts and bullish momentum for further recovery.

This situation is highlighted by the gap between the current trading price and the all-time high of $3.040 reached in January 2018, representing an 82% difference from the peak.

However, a full victory for Ripple and a possible influx of other institutions following Bitwise’s move for an XRP ETF could significantly influence the price and potentially rekindle investor confidence in the token, bolstering a positive outlook for the remainder of the year.