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.
XRP ETF Applications Gain Momentum
Despite this initial step, the road to approval is fraught with challenges. No XRP ETF is guaranteed to meet the SEC’s regulatory standards.
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Recent reports indicate that applications for ETFs linked to Solana, the fifth-largest cryptocurrency, were recently rescinded due to the SEC’s concerns about Solana’s legal standing.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.
Implications Of SEC’s Ripple Lawsuit
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…
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