As Ripple nears a resolution in its ongoing legal dispute with the US Securities and Exchange Commission (SEC), crypto asset manager Bitwise Invest has taken an important step by filing for the first local XRP ETF in Delaware.
Application for Bitwise’s XRP ETF
This fills in, report by Fox reporter Eleanor Terret, was officially posted on September 30, too sources within Bitwise have confirmed the authenticity of this development. The approval of this ETF could have a major impact on the broader cryptocurrency market.
The filing comes at an important time for Ripple, as the company expects SEC Decision about appealing a recent court ruling that could pave the way for more regulatory clarification on XRP.
If the SEC chooses not to appeal, it could support XRP’s case as a viable investment, making the timing of Bitwise’s filing particularly strategic.
However, the road to approval is not straightforward. Like the previous Bitcoin and Ethereum ETF applications—which were approved in January and July of this year, respectively—Bitwise’s filing will have to be carefully considered and meet various regulatory requirements set by the SEC. The agency’s review process can be lengthy, and approval may not come until next year.
The Ripple Effect
The inclusion of the XRP ETF may also signal a change in the regulatory environment, which may open the way for other financial institutions, such as BlackRock, to implement similar applications.
In addition, this development may create a negative impact on other cryptocurrencies that want to enter the ETF space. Guessing is already growing about the possibility of the Solana ETF, which may be the next asset to attract interest from investors.
It remains to be seen what other information the asset manager may reveal in the coming days, but the initial filling of the first US XRP ETF spot is official.
At the time of writing, the price of XRP did not show a change in the wider market, posting a loss of 3% in a period of 24 hours, leading to the current trading price of $ 0.6028.
However, a potential XRP ETF market could have a significant price impact as more institutions may flock to invest in the token.
Featured image from DALL-E, chart from TradingView.com