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. 

The asset manager has filed Form S-1 for its Bitwise XRP ETF, marking the first step in their bid to offer a Spot XRP ETF. This fund will hold XRP directly and provide investors an opportunity to gain exposure to the crypto token through the securities market. As such, it will be similar to the Spot Bitcoin and Ethereum ETFs, which were approved earlier this year.

As noted in Bitwise’s press release, the launch of this fund is pending the effectiveness of Form S-1 and the approval of Form 19b-4 filing. The 19b-4 has yet to be filed by any exchange. However, it is the registration by an exchange seeking a rule change so they can be able to offer the XRP ETF on their platform. 

Speaking on the S-1 application, Bitwise stated that XRP is an enduring crypto asset that many investors want exposure to. As such, this motivated their decision to file for the first-ever XRP ETF. The asset manager is already a familiar face in the crypto community as they already offer Spot Bitcoin and Ethereum ETFs. 

Meanwhile, Bitwise’s S-1 form application is significant as it shows that they have adopted Judge Analisa Torres’ ruling that XRP isn’t a security. However, an approval of the fund will all boil down to whether or not the SEC also adopts this view. In August, the Commission rejected the 19b-4s for the Spot Solana ETF applications because they still have reservations about SOL’s legal status. 

Market experts like Bloomberg analyst Eric Balchunas and Nate Geraci, President of the ETF Store, have weighed on the chance of approval. They suggested that approval is unlikely to come until after the US elections. Meanwhile, Alex Thorn, Head of Firmwide Research at Galaxy Digital, stated that the odds of approval drop to zero if the SEC appeals its case against Ripple. 

The SEC has filed a notice of appeal in its case against Ripple, indicating the Commission’s intention to appeal Judge Torres’ ruling on XRP not being a security or the $125 million penalty awarded against Ripple. Just as Thorn predicted, this appeal means that the Bitwise XRP ETF is unlikely to be approved anytime soon, especially if the SEC’s case borders on XRP being a security. 

The SEC’s decision to appeal has once again brought uncertainty to the XRP ecosystem, as the crypto’s status is still in contention. Ripple’s CEO Brad Garlinghouse stated that following Bitwise’s application, he expects more asset managers to file for an XRP ETF. However, that looks unlikely at the moment, with the Ripple SEC lawsuit set to continue for much longer. 

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