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Crypto asset manager Bitwise has taken an important step by sending the first letter registration statement to the US Securities and Exchange Commission (SEC) on Wednesday in its XRP ETF. This act confirms its authenticity to fill on September 30, following widespread speculation about the development.
XRP ETF Applications Gain Momentum
Despite this first step, the road to accreditation is fraught with challenges. No XRP ETF is guaranteed to meet the SEC regulatory standards.
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The latest reports shows that applications for ETFs linked to Solana, the fifth largest cryptocurrency, were recently withdrawn due to SEC concerns about Solana’s legal standing. Nevertheless, Hunter Horsley, CEO of Bitwise, expressed confidence in the potential of XRP as an investment opportunity.
“XRP is one of the most durable, well-known assets in the space and it’s recognized among mainstream investors,” Horsley said in an interview with Fox Business. He emphasized that Bitwise aims to help investors access the opportunities in the cryptocurrency market, and the introduction of the Bitwise XRP ETF is in line with that aim.
In addition to Bitwise’s efforts, Fox Business has learned that another XRP ETF filing has come from Canary Capital, a newly created crypto-focused. investment company was founded by Steven McClurg, founder and former chief investment officer of Valkyrie Funds. Canary’s XRP ETF was introduced on September 24.
Implications of the SEC’s Ripple Lawsuit
The regulatory status of XRP has been a contentious issue in recent years, especially following the SEC’s lawsuit against Ripple in 2020, which claimed that the sale of XRP constituted what the agency called “unregistered securities offerings.”
The latest decision gave Ripple a partial victorywhich determines that only certain sales—mainly to institutional investors—are classified as securities. This decision has major implications for the future of XRP, especially as the SEC approaches its October 7th deadline to file an appeal.
As report by Bitcoinist earlier this week, Pro-XRP attorney Fred Rispoli indicated that the chances of filing a complaint with the SEC are higher than the chance of the agency allowing the case to conclude without further action.
Rispoli highlighted the stakes involved, noting that if the SEC chooses not to appeal, it could set a divisive precedent for Ripple’s case in the future. cryptocurrency trading. This could have wide-ranging consequences, not only for the application of Bitwise’s XRP ETF but also for other institutions that make similar moves to offer similar investment vehicles for the token.
This may be similar to the recently launched Bitcoin and Ethereum Spot ETF markets, which were approved and launched in January and July this year, respectively, with the largest asset managers in the world offering these index funds to their clients, further supporting the acquisition and investment of these cryptocurrencies.
XRP price
Despite this significant development of the XRP market, its price failed to follow the excitement created among investors, as the token followed a decline in broader markets with a 7% drop in the 24-hour period, resulting in a current trading price of $0.578.
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Despite this, the cryptocurrency still managed to hold on to some of its gains from last month, rising 5% during that time. However, XRP managed to gain 10% annually, highlighting the lack of catalysts and bullish momentum for the recovery.
This is especially evident in the gap between the current trading price and the world class of $3,040 reached in January 2018, leaving a difference of 82% from the record high.
However, the full victory of Ripple and other institutions to follow Bitwise’s XRP ETF initiative may have a noticeable impact on the price and perhaps renew investor confidence in the token, strengthening the bullish outlook for the rest of the year.
Featured image from DALL-E, chart from TradingView.com