As an analyst with over two decades of experience in the financial markets, I’ve seen many regulatory battles shape the course of various assets. The latest move by Bitwise to submit an XRP ETF application to the SEC is a significant step that could potentially reshape the crypto landscape, especially if approved. However, the road to approval for any cryptocurrency-linked ETF is always fraught with challenges due to regulatory uncertainties and market conditions.
On Wednesday, Bitwise Asset Management took a significant step forward by submitting an initial registration statement to the U.S. Securities and Exchange Commission (SEC) for a spot XRP ETF. This action verifies their filing from September 30th, quelling widespread speculation about the project’s progress.
XRP ETF Applications Gain Momentum
Even though we’ve taken this first step, the path to approval remains filled with difficulties. It’s important to note that an XRP ETF might not necessarily meet the Securities and Exchange Commission’s (SEC) stringent regulatory requirements.
Recent reports indicate that applications for ETFs linked to Solana, the fifth-largest cryptocurrency, were recently rescinded due to the SEC’s concerns about Solana’s legal standing. Nonetheless, Hunter Horsley, CEO of Bitwise, expressed confidence in XRP’s potential as an investment opportunity.
In his conversation with Fox Business, Horsley noted that XRP is one of the longest-standing, widely recognized assets within the crypto sector and even attracts mainstream investors. He underscored that Bitwise’s goal is to facilitate access for investors in the cryptocurrency market, and submitting a Bitwise XRP ETF proposal aligns with this objective.
Beyond Bitwise’s initiatives, it has been discovered that another application for an XRP Exchange Traded Fund (ETF) has arisen from Canary Capital, a fresh investment company specializing in cryptocurrencies. This firm is led by Steven McClurg, a co-founder and former chief investment officer of Valkyrie Funds. Canary’s XRP ETF was submitted on September 24th.
Implications Of SEC’s Ripple Lawsuit
Over the last few years, I’ve found myself deeply engrossed in understanding the legal standing of XRP. This debate escalated significantly after the SEC filed a lawsuit against Ripple in 2020, alleging that the sale of XRP amounted to what they term “unregistered securities offerings.” As a researcher, I’ve been closely following this ongoing discussion to gain insights into the regulatory landscape of digital assets.
As a researcher, I recently discovered that a recent court decision granted Ripple a partial triumph, designating specific sales, specifically those made to institutional investors, as securities. This verdict carries substantial weight for XRP‘s future, considering the SEC’s upcoming October 7 deadline to file an appeal.
In my recent exploration, I’ve discovered that Pro-XRP attorney Fred Rispoli suggests the possibility of an SEC appeal in the ongoing XRP case might be more likely compared to the instance where the Securities and Exchange Commission would choose to let the matter rest without additional actions.
Rispoli highlighted the stakes involved, noting that if the SEC chooses not to appeal, it could set a precedent that distinguishes Ripple’s case from future cryptocurrency sales. This could have wider implications, not only for Bitwise’s XRP ETF application but also for other institutions making similar moves to offer the same investment vehicles for the token.
This might resemble the recently initiated Spot Exchange-Traded Fund (ETF) markets for Bitcoin and Ethereum, which were authorized and debuted in January and July of this year respectively. Notably, some of the world’s leading asset managers have started providing index funds based on these cryptocurrencies to their clients, thereby boosting their acceptance and investment.
XRP Price
Regardless of the significant progress seen in the XRP market recently, the token’s value hasn’t mirrored the enthusiasm among investors. Instead, it has matched the general market slump, experiencing a 7% decrease over the past 24 hours, which has brought its current trading price down to $0.578.
Despite this, the cryptocurrency is still managing to hold on to some of its gains from last month, up 5% over the period. However, XRP has only managed to gain 10% every year, highlighting the lack of catalysts and bullish momentum for further recovery.
It’s quite noticeable that the present trading price falls significantly short of its all-time high of $3,040 set back in January 2018, representing a gaping chasm of approximately 82% from the historical record.
As a crypto investor, I can’t help but feel excited about the potential implications if Ripple and other institutions were to follow Bitwise’s lead in seeking an XRP Exchange-Traded Fund (ETF). Such a move could significantly boost the price of XRP and potentially rekindle investor trust in this token, thereby reinforcing a bullish sentiment for the remainder of the year.
Read More
Sorry. No data so far.
2024-10-03 05:46