Bitwise Files for XRP ETF Amid Market Speculation
On September 30, Bitwise Asset Management submitted a filing for an XRP exchange-traded fund (ETF) with the Delaware Division of Corporations. This filing is pivotal for the crypto landscape, especially as it contains the registration for a Delaware statutory trust— a business-form trust legally recognized in the state.
Confirmation from Bitwise
Matt Hougan, Chief Investment Officer at Bitwise, confirmed the move and mentioned that further details will emerge shortly. This filing comes in the backdrop of notable developments in cryptocurrency investments, particularly highlighted by Grayscale’s recent transition of its Bitcoin Trust into an ETF.
The Ripple Influence
Adding to the intrigue, Grayscale also launched an XRP trust on September 12, right after the conclusion of a four-year legal tussle between Ripple Labs, the issuer of XRP, and the U.S. Securities and Exchange Commission (SEC). As a result of the SEC’s partial win, Ripple faced a fine of $125 million; however, the court ruled that XRP offerings to retail investors were not classified as unregistered securities, which has positively influenced market sentiment.
XRP Market Performance
Despite favorable legal developments, XRP’s price remains sensitive to broader market trends. As of now, it stands at $0.6117, reflecting a decrease of 2.6% in the last 24 hours, as per CryptoSlate data.
Challenges in Securing ETF Approval
The path to obtaining approval for a new cryptocurrency-related ETF—especially one not associated with Bitcoin or Ethereum—poses significant challenges. Nate Geraci, CEO of The ETF Store, indicated that gaining SEC approval for the XRP ETF may require political backing.
Expert Perspectives on ETF Approval
Bloomberg’s senior ETF analyst, Eric Balchunas, commented on the current climate, stating that the likelihood of a Solana ETF’s approval is quite low, likening it to “a snowball’s chance in hell.” This assessment followed asset managers VanEck and 21Shares’ recent ETF filings for Solana, which came just days after the first spot Ethereum ETFs began trading in the U.S.
Regulatory Landscape
Amidst these developments, SEC Chairman Gary Gensler reiterated Bitcoin’s status as a commodity during a Congress hearing on September 24 but refrained from clarifying which tokens may be categorized as securities. This ambiguity leaves the potential outcomes for both Solana and XRP ETFs under the current SEC administration uncertain.
Keywords: XRP ETF, Bitwise, Ripple Labs, SEC Approval, Cryptocurrency Market, ETF Challenges
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