Bitwise Asset Management recently filed for an XRP Exchange Traded Product (ETP), amid growing expectations for regulatory approval. This filing, filed with the US Securities and Exchange Commission (SEC), has the potential to reshape XRP’s market trajectory, if approved. Bitwise filed Form S-1 on September 30, laying the groundwork for a potential trust entity that could serve as the basis for an XRP ETF.
However, much of this depends on the SEC’s next step in the legal battle with Ripple. The SEC has until October 7, 2024 to decide whether to appeal the court’s ruling in the Ripple case regarding programmatic sales of XRP. In July 2023, the court ruled that these sales did not violate securities laws, a decision that boosted the price of XRP at the time.
Alex Thorn, head of research at Galaxy Digital, responded to the news of Bitwise’s XRP ETF filing, noting that the SEC has until October 7 to appeal Judge Torres’ July 2023 ruling, which found stipulates that secondary sales of XRP through exchanges are not considered securities. .
Thorn expressed skepticism about the ETF’s chances, stating that the chances of approval would “drop to almost zero” if the SEC decides to appeal. He added: “I will be very surprised if they don’t appeal.” Senior ETF analyst Eric Balchunas echoed this sentiment. He said: “Almost zero if Harris wins, I agree. Trump victory and anything is possible on this front IMO.”
Bitwise’s XRP ETP application could boost demand, potentially pushing the price towards $1 if approved. At the time of writing, XRP is trading in the red and has dipped below the crucial $1 mark. The outcome of the SEC’s decision on an appeal remains a critical factor for XRP investors. If the SEC appeals, XRP prices could fall to $0.40. However, if left unchecked, XRP could rise towards the $1 mark.
Credit : coinpedia.org
