Updates on Bitwise’s Application for an XRP ETFs 📈
On September 30, Bitwise submitted a proposal for an Exchange-Traded Fund (ETF) based on the spot value of Ripple (XRP). As events unfold, it appears that the current price of XRP does not indicate a strong noticeable reaction from investors regarding this development.
Bitwise’s Proposal for a Ripple (XRP) Spot ETF
The world’s leading cryptocurrency index fund manager, Bitwise, has taken steps to file for a spot ETF focused on Ripple (XRP).
This application is officially recorded on the Delaware Division of Corporations, with the filing dated September 30.
By making this filing, Bitwise has initiated its attempt to launch a new XRP spot ETF; however, this step does not automatically mean that a formal submission to the Securities and Exchange Commission (SEC) of the United States will follow soon.
Essentially, Bitwise has merely filed for the establishment of a trust entity. Notably, companies such as Blackrock and Fidelity have previously registered trust entities for Bitcoin (BTC) and Ethereum (ETH) before requesting ETFs linked to those cryptocurrencies.
A representative from Bitwise has confirmed that this filing is indeed valid, thus indicating that the company is on the pathway toward creating its XRP spot ETF.
This action stands in contrast to a situation from last November 2023, when a proposed BlackRock XRP ETF submission appeared, which caused significant speculation regarding XRP’s value. At that time, BlackRock had to forcefully reject any rumors about launching an XRP ETF.
Bitwise’s Pursuit of a Ripple (XRP) ETF in the USA 🌎
Bitwise’s initiative to establish its XRP spot ETF in the United States stems from the favorable outcomes of its previous ETF ventures.
In fact, this year has already witnessed the approval of a Bitcoin spot ETF in January, with the SEC confirming an Ethereum spot ETF in July.
Additionally, in August 2024, the crypto entity known as Ripple came to a resolution regarding its prolonged legal battle with the SEC, with a declaration that XRP should not be considered a security.
These developments have contributed to the optimism expressed by Ripple’s CEO, Brad Garlinghouse, about the potential for an XRP ETF in the US. He has articulated his belief that the launch of an XRP ETF is “inevitable.”
Given this backdrop, Bitwise aims to capitalize on these favorable conditions. However, it is worth noting that the market reaction from XRP investors remains muted at this point.
Current XRP Valuation 📉
As of the latest reports, XRP is trading at $0.59, reflecting a decline of 4% over the past 24 hours. Notably, this decrease in price began precisely on September 30, coinciding with Bitwise’s ETF application announcement.
This indicates that the latest move by the cryptocurrency index fund manager has not sparked enthusiasm among XRP investors.
Conversely, from mid-September through the end of the month, XRP experienced a price increase, which may have been influenced by the announcement that Grayscale intends to introduce its XRP Trust Fund soon.
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