As Ripple approaches a resolution in its ongoing legal dispute with the US Securities and Exchange Commission (SEC), crypto asset manager Bitwise Invest has taken a significant step by filing the first application for an spot XRP ETF in Delaware.
Bitwise’s XRP ETF Application
This filing, reported by Fox journalist Eleanor Terret, was officially submitted on September 30, and sources within Bitwise have confirmed the authenticity of this development. The approval of this ETF could have considerable implications for the broader cryptocurrency market.
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The filing comes at a pivotal moment for Ripple, as the company is awaiting the SEC’s decision on whether to appeal a recent court ruling that could potentially pave the way for greater regulatory clarity around XRP.
Should the SEC choose not to appeal, it may bolster the case for XRP as a viable investment option, making the timing of Bitwise’s application particularly strategic.
However, the path to approval is not straightforward. Like previous applications for Bitcoin and Ethereum ETFs—which were approved in January and July of this year, respectively—Bitwise’s filing will need to undergo rigorous scrutiny and meet various regulatory requirements set forth by the SEC. The agency’s review process can be lengthy, and approval may not come until next year.
Ripple Effect
The filing of an XRP ETF could also signal a shift in the regulatory landscape, potentially opening the door for other financial institutions, such as BlackRock, to pursue similar applications.
Moreover, this development may create a ripple effect for other cryptocurrencies seeking to enter the ETF space. Speculation is already growing around the possibility of a Solana ETF, which could be the next asset to attract interest from investors.
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It remains to be seen what other information can be revealed in the coming days by the asset manager, but the first filling of the first US spot XRP ETF is official.
At the time of writing, the XRP price has shown no change from the broader market, posting losses of 3% in the 24-hour time frame, resulting in a current trading price of $0.6028.
However, a potential XRP ETF market could have a notable price impact as more institutions could flock to invest in the token.
Featured image from DALL-E, chart from TradingView.com