Crypto: Bitwise Accelerates With An XRP ETF

After the success of spot Bitcoin and Ethereum ETFs, the XRP ETF is now making headlines. Bitwise, a major player in the crypto space, is doubling down on this initiative. This strategic move reflects Ripple’s growing position in the altcoin landscape. However, the excitement around the XRP ETF has not yet translated into SEC approval. This complex issue deserves close attention.

The challenges of an XRP ETF

The path for an XRP ETF seems fraught with obstacles, much like the unconvincing Solana ETF. Although Bitwise has filed a request to create a trust in Delaware, SEC approval is not yet guaranteed. This process often takes time, as evidenced by the long delays for Bitcoin and Ethereum ETFs.

The SEC’s caution towards crypto-based financial products is well-known, particularly after years of legal battles between the agency and Ripple.

In July 2023, a historic judgment partially cleared XRP, but the case is far from closed. Ripple remains under scrutiny, particularly regarding institutional sales of XRP, which the court could still classify as securities sales. The crypto community is on high alert, waiting to see if this ETF will come to fruition or remain in regulatory limbo.

A community member, Eleanor Terrett, even tweeted: “Bitwise has filed an XRP ETF in the State of Delaware. More details to come.“

🚨SCOOP: Crypto asset manager @BitwiseInvest has filed in the state of Delaware for an $XRP ETF.

More details to come. Stay tuned. 😁 pic.twitter.com/2q7zDj7aYm

— Eleanor Terrett (@EleanorTerrett) October 1, 2024

• 12%: the increase in XRP price after a false ETF filing in 2023;
• 2020: start of the legal battle between Ripple and the SEC;
• 2024: official filing for the XRP ETF by Bitwise.

The crypto ETF, a double-edged sword?

The world of crypto ETFs is experiencing tremendous growth, but each new attempt at introduction seems to reignite debates between regulators and investors. After Bitcoin and Ethereum ETFs, introducing an XRP ETF would mark a new milestone in integrating cryptos into traditional financial markets.

However, investor enthusiasm does not always reflect in the performance of the concerned assets. Despite growing institutional interest, the prices of certain cryptos like XRP struggle to take off.

This paradox raises questions among some analysts, who wonder about the real reasons for this inertia. The lack of trust from regulators, combined with legal uncertainty, may be hindering the mass adoption Ripple hopes for its altcoin. And even though ETFs can expand the crypto market, they do not erase persistent doubts about the stability and sustainability of these assets.

Indeed, despite growing enthusiasm, Ripple’s crypto does not shine across the board. Some wonder why, despite increased adoption, the price of XRP is not rising.