Donald Trump

Gary

<ul>
 <li aria-level="1">Bitwise formally requested to launch a spot XRP ETF, potentially reshaping Ripple’s market stance.</li>
 <li aria-level="1">Approval could herald new crypto ETFs, with impacts extending beyond Ripple to broader markets.</li>
</ul>
Bitwise, a company specializing in cryptocurrency-based investment funds, has formally applied to launch an ETF based on XRP, the digital currency native to Ripple’s network. This signals Bitwise’s venture into potentially new terrain in the realm of digital currency investment vehicles.
<h2 id="span-style-font-weight-400-bitwise-eyes-xrp-etf-potential-span">Bitwise Eyes XRP ETF Potential</h2>
The initial <a href="https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx" rel="noopener noreferrer nofollow">reports</a> surfaced after Bitwise’s application with the Delaware Division of Corporations, proposing an entity named Bitwise XRP ETF. While this could hint at the imminent launch of the product, Bitwise’s Chief Investment Officer, Matthew Hougan, confirmed the registration during an interview with The Block:
<blockquote>
 “We can confirm that this is a registration made by us. It’s a trustee registration in Delaware. More details and comments will be shared tomorrow,” Hougan stated.
</blockquote>
Currently, the application does not appear to have been submitted to the U.S. Securities and Exchange Commission (SEC), the regulatory body that has the final say on spot-based digital currency ETFs. Earlier this year, the SEC approved the launch of Bitcoin-related products, and in July, it authorized Ethereum-linked funds.
Challenges Ahead for Crypto ETFs Predicting the success of a spot XRP ETF might be premature, particularly given the complex backdrop of the SEC’s prolonged battle with Ripple Labs. The SEC’s legal skirmish did not end entirely in its favor, as it was determined that the presale of the token did not qualify as unregistered securities trading, at least among retail investors.
The SEC managed a partial victory in this case by acknowledging that there were violations in token trading among institutional investors. Consequently, after several weeks of dispute, the agency settled with Ripple on a $125 million fine, concluding the legal battle.
The prospect of seeing more spot crypto ETFs is bleak, not only for Ripple but generally across the sector. Analysts deem it unlikely that other digital currencies will see similar products in the short term. Beyond <a href="https://www.ethnews.com/is-bitcoin-about-to-hit-an-all-time-high-heres-what-you-need-to-know/" rel="noopener noreferrer nofollow">Bitcoin</a> and Ethereum, other digital currencies have smaller market caps, implying lower liquidity.
As Bitwise moves forward with plans for an <a href="https://www.ethnews.com/the-secret-behind-xrps-sudden-whale-activity-find-out-why/" rel="noopener noreferrer nofollow">XRP-based fund</a>, entities like VanEck and 21Shares are pursuing a Solana spot ETF. However, these efforts face hurdles that diminish their likelihood of entering the U.S. market.
Lastly, these applications arrive at a time when the SEC might undergo a leadership change. Analysts speculate that if either <a href="https://www.ethnews.com/donald-trumps-crypto-fundraiser-gathers-momentum-at-bitcoin-conference/" rel="noopener noreferrer nofollow">Donald Trump</a> or Kamala Harris wins the next election, Gary Gensler might leave his position at the SEC, potentially making way for a new chairperson with a more crypto-supportive stance.
The post <a href="https://www.ethnews.com/bitwises-xrp-etf-bitwise-aims-to-introduce-an-xrp-etf-enhancing-investment-options-in-the-crypto-space/" rel="noopener noreferrer nofollow">Bitwise’s XRP ETF: Bitwise Aims To Introduce An XRP ETF, Enhancing Investment Options In The Crypto Space</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

Bitwise’s XRP ETF: Bitwise Aims To Introduce An XRP ETF, Enhancing Investment Options In The Crypto Space

Table of Contents

ETHNews

Other articles published on Oct 1, 2024

Bitcoin ETFs Attract Investors While Ethereum Lags

Scaramucci Teases “Uptober” as Bitcoin Plunges

Ripple’s 500 Million XRP Escrow Lock Triggers Whale Alert

ETH Gas Fees Up Nearly 500% in Two Weeks: Surge Linked to Increased Network Usage

Arbitrum One Surpasses 1 Billion Transactions Since Launch

Top Trending Cryptos on Solana Chain Today – NOTDOG, PEPA THE PIG, World’s Smallest Bunny

Join our free newsletter for daily crypto updates!