Bitwise has officially initiated the application process for an XRP Coin ETF, signaling a significant moment in the cryptocurrency market. Despite apprehensions surrounding the application, particularly following a fraudulent filing by BlackRock last November, the latest updates confirm that the necessary procedures are now in motion.
What Does This Mean for XRP?
The filing of an S-1 Form with the SEC marks a key step for Bitwise in seeking approval for its XRP ETF. The previous incident, where BlackRock’s submission led to volatility in XRP prices, has heightened scrutiny around such applications. Nevertheless, experts believe this filing is a serious attempt to gain regulatory approval.
Will the SEC Approve the ETF?
While Bitwise’s application is now submitted, it does not automatically lead to approval. The SEC has established a deadline for appeals, set for October 7, and previous applications have faced rejection following SEC reviews. If granted, Bitwise would claim a pivotal position as the second company to manage an altcoin ETF, following Ethereum.
Key points to consider include:
- Bitwise’s filing indicates serious intent to enter the ETF market.
- The SEC’s deadline for responses may impact potential approval outcomes.
- Historical precedents show the SEC’s cautious approach toward cryptocurrency ETFs.
The path forward for Bitwise’s XRP ETF remains uncertain and may extend over several months. The SEC’s capacity to delay its decision adds another layer of complexity to the application process, leaving market participants eager for clarity.
