XRP ETF: The Next Crypto Revolution on the Horizon?
In a bold move that could shake up the crypto landscape, Bitwise, a prominent crypto asset manager, has filed an application to launch an XRP ETF (Exchange-Traded Fund). This application, filed in Delaware, has been verified as legitimate and is stirring excitement among crypto enthusiasts and investors alike.
The filing comes on the heels of the U.S. Securities and Exchange Commission's (SEC) recent approval of ETFs for Bitcoin and Ethereumâ the two heavyweights of the cryptocurrency world. Billions of dollars have flooded into these newly-approved investment vehicles, signaling a growing appetite for crypto in traditional markets.
But Bitwiseâs timing couldnât be more interesting. The SEC is still embroiled in a high-stakes legal battle with Ripple Labs over the very nature of XRP. The central question: Is XRP a security? If the SEC prevails, it could throw a wrench in Bitwiseâs ETF plans.
The roots of this battle go back to 2020 when the SEC accused Ripple of raising $1.3 billion by selling XRP as an unregistered security. Last year, Ripple secured a partial winâ a judge ruled that sales of XRP to retail investors were not considered securities. However, sales to institutional investors were deemed unregistered securities, leaving the case in legal limbo.
As XRP trades around $0.61, with a modest uptick in recent weeks, all eyes are on the SEC and Ripple. The approval of an XRP ETF could unlock a floodgate of institutional investment into XRP, much like what Bitcoin and Ethereum experienced.
However, the legal uncertainty surrounding XRPâs classification continues to loom large, keeping investors on edge.
For now, the crypto world waits with bated breath, watching for the next move in this high-stakes saga.
Could an XRP ETF be the key to XRPâs mainstream breakthrough, or will regulatory hurdles halt its momentum? Only time will tell.
