As Ripple nears a resolution in its ongoing legal dispute with the United States Securities and Exchange Commission (SEC), crypto asset manager Bitwise Invest has taken an important step by filing the first application for XRP spot ETF in Delaware.
Bitwise XRP ETF App
This deposit, reported by Fox reporter Eleanor Terret, was officially submitted on September 30, and sources within Bitwise have confirmed the authenticity of this development. The approval of this ETF could have far-reaching implications for the broader cryptocurrency market.
The filing comes at a pivotal time for Ripple, as the company awaits the The SEC’s decision on whether to appeal a recent court ruling that could potentially pave the way for greater regulatory clarity around XRP.
If the SEC chooses not to appeal, it could strengthen the case for XRP as a viable investment option, making the timing of Bitwise’s application particularly strategic.
However, the path to approval is not straightforward. Like previous applications for Bitcoin and Ethereum ETFs, which were approved in January and July of this year respectively, Bitwise’s filing will have to undergo rigorous review and meet various regulatory requirements set forth by the SEC. The agency’s review process can be lengthy and approval may not come until next year.
Ripple effect
The filing of an XRP ETF could also signal a change in the regulatory landscape, potentially opening the door for other financial institutions, such as BlackRock, to pursue similar applications.
Additionally, this development could create a ripple effect for other cryptocurrencies looking to enter the ETF space. Speculation is already developing around the possibility of a Solana ETF, which could be the next asset to attract investor interest.
It remains to be seen what other information may be revealed in the coming days by the asset manager, but the first filling of the first US XRP spot ETF is official.
At the time of writing, the price of current $0.6028.
However, a potential XRP ETF market could have a notable impact on prices as more institutions could flock to invest in the token.
Featured image of DALL-E, chart by TradingView.com
