Crypto asset manager Bitwise has made a significant move by submitting an initial registration statement to the US Securities and Exchange Commission (SEC) on Wednesday for its spot XRP ETF. This action confirms the authenticity of its filing on September 30, following widespread speculation regarding the development. 

Despite this initial step, the road to approval is fraught with challenges. No XRP ETF is guaranteed to meet the SEC’s regulatory standards. 

Recent reports indicate that applications for ETFs linked to Solana, the fifth-largest cryptocurrency, were recently rescinded due to the SEC’s concerns about Solana’s legal standing.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. 

“XRP is one of the most enduring, well-known assets in the space and is also recognized among mainstream investors,” Horsley stated in an interview with Fox Business. He emphasized that Bitwise aims to help investors access opportunities in the cryptocurrency market, and the filing for a Bitwise XRP ETF aligns with that mission.

In addition to Bitwise’s efforts, Fox Business has learned that another XRP ETF filing has emerged from Canary Capital, a newly formed crypto-focused investment firm founded by Steven McClurg, co-founder and former chief investment officer of Valkyrie Funds. Canary’s XRP ETF was filed on September 24.

The regulatory status of XRP has been a contentious issue over the past years, particularly following the SEC’s lawsuit against Ripple in 2020, claiming that XRP sales constituted what the agency calls “unregistered securities offerings.” 

A recent ruling provided Ripple a partial victory, determining that only certain sales—specifically to institutional investors—were classified as securities. This ruling has significant implications for XRP’s future, particularly as the SEC approaches its October 7 deadline to appeal.

As reported by Bitcoinist earlier this week, Pro-XRP attorney Fred Rispoli has indicated that the likelihood of an SEC appeal is 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 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 could be similar to the newly launched Bitcoin and Ethereum Spot ETF markets, which were approved and launched in January and July this year, respectively, with the world’s largest asset managers offering these index funds to their clients, further supporting the adoption and investment in these cryptocurrencies. 

Despite this notable development for the XRP market, its price has failed to follow the excitement generated among investors, as the token has followed the broader market’s decline with a 7% drop in the 24-hour time frame, resulting in a current trading price of $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. 

This is particularly evident in the gap between the current trading price and the all-time high of $3,040 reached in January 2018, leaving a difference of 82% from the record peak.

However, a full victory for Ripple and other institutions to follow Bitwise’s initiative for an XRP ETF could 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

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