As a seasoned crypto investor with a knack for spotting opportunities and navigating the intricate landscape of regulatory decisions, I find myself both excited and cautiously optimistic about the recent filing of the Bitwise XRP ETF on the SEC website. The potential for institutional investors to gain exposure to XRP through this fund is undeniably enticing, especially considering the success of Spot Bitcoin and Ethereum ETFs earlier this year.
The Bitwise XRP ETF filing has gone live on the US Securities and Exchange Commission (SEC) website. This application, which is a first of its kind, will offer institutional investors an avenue to gain exposure to XRP if approved.
Bitwise XRP ETF Now Live On SEC Website
The investment firm has submitted Form S-1 for its proposed Bitwise XRP Exchange Traded Fund (ETF), signifying the initial move towards offering a direct XRP Spot ETF. This fund aims to own XRP assets outright and offer investors a chance to invest in the cryptocurrency token through traditional securities trading channels. Consequently, it will resemble the approved Spot Bitcoin and Ethereum ETFs from this year, functioning in a similar manner.
According to Bitwise’s announcement, the launch of this fund is contingent upon both the acceptance of Form S-1 and the submission (and subsequent approval) of Form 19b-4, which has not yet been filed by any exchange. Essentially, Form 19b-4 is a request made by an exchange to modify their rules in order to list the XRP ETF on their platform.
Discussing the S-1 filing, Bitwise explained that XRP is a long-lasting cryptocurrency that numerous investors are interested in investing in. This interest prompted their move to submit the first-ever XRP Exchange Traded Fund (ETF) application. The asset manager is well-known within the crypto sphere, as they currently provide Spot Bitcoin and Ethereum ETFs.
In essence, Bitwise’s application for an IPO using the S-1 form is important since it reflects their acceptance of Judge Analisa Torres’ decision that XRP isn’t considered a security. Yet, whether or not this fund will be approved depends on whether the SEC shares this perspective. Back in August, the SEC declined the 19b-4s for the Spot Solana ETF applications due to lingering doubts about SOL‘s legal standing.
Market analysts such as Eric Balchunas from Bloomberg and Nate Geraci, President of the ETF Store, have shared their views on the likelihood of approval. They believe it’s unlikely that approval will be granted before the US elections. Additionally, Alex Thorn, Head of Firmwide Research at Galaxy Digital, mentioned that if the SEC decides to appeal its case against Ripple, the chances of approval drop to zero.
SEC Has Appealed Its Case Against Ripple
The Securities and Exchange Commission (SEC) has chosen to challenge Judge Torres’ decision in their lawsuit against Ripple, signaling the agency’s desire to overturn his ruling that XRP is not considered a security, as well as the $125 million fine imposed on Ripple. As predicted by Thorn, this appeal suggests that the Bitwise XRP Exchange-Traded Fund (ETF) may not be approved in the near future, especially if the SEC’s case regarding XRP being a security is strong.
The SEC’s decision to appeal has reintroduced a cloud of ambiguity over the XRP community, as the cryptocurrency’s legal standing remains undecided. Ripple’s CEO Brad Garlinghouse anticipates that more asset managers will apply for an XRP Exchange-Traded Fund (ETF) in light of Bitwise’s application. Nevertheless, given the ongoing litigation between Ripple and the SEC, it seems improbable that such an ETF will materialize soon.
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2024-10-03 19:44