As Ripple moves closer to concluding its legal battle with the US Securities and Exchange Commission (SEC), Bitwise Invest, a cryptocurrency asset management firm, has made a noteworthy move by submitting the inaugural application for a spot XRP ETF in Delaware.
Bitwise’s XRP ETF Submission
This application, highlighted by Fox reporter Eleanor Terret, was officially filed on September 30, and insiders at Bitwise have confirmed the legitimacy of this move. The acceptance of this ETF could significantly influence the wider cryptocurrency landscape.
The submission comes at a crucial juncture for Ripple, as the firm anticipates the SEC’s ruling on whether to challenge a recent court decision that could lead to clearer regulations concerning XRP.
If the SEC opts not to appeal, it may strengthen the position of XRP as a feasible investment option, making Bitwise’s application particularly well-timed.
Nonetheless, the journey to approval is complex. Similar to past applications for Bitcoin and Ethereum ETFs—which gained approval in January and July of this year, respectively—Bitwise’s application will face intense examination and must adhere to various regulatory standards outlined by the SEC. The agency’s evaluation period can be protracted, and approval may not occur until next year.
Ripple Implications
An XRP ETF filing could also indicate a transformation in the regulatory environment, potentially paving the way for other financial entities, such as BlackRock, to follow suit with similar applications.
Furthermore, this event may trigger a ripple effect for additional cryptocurrencies aiming to enter the ETF arena. Speculation is already building around a possible Solana ETF, which may be the next asset to capture investor attention.
It remains unclear what further developments Bitwise may reveal in the upcoming days, but the submission of the first US spot XRP ETF is now official.
As of this moment, XRP’s price has shown no significant change in correlation with the broader market, experiencing a decline of 3% over the past 24 hours, bringing its current trading price to $0.6028.
However, the prospect of an XRP ETF market could substantially impact prices as more institutions may look to invest in the token.
Featured image from DALL-E, chart from TradingView.com
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