Bitwise, a crypto index fund manager, recently filed for an exchange-traded fund (ETF) based on Ripple. (XRP). This announcement marks a significant milestone in the evolution of cryptocurrency investments, especially after the resolution of the long-standing dispute between the SEC and Ripple Labs.
An ETF request in a favorable context
The ETF application filed by Bitwise comes at a time when the regulatory climate seems to be improving for Ripple. After a settlement between the SEC and Ripple Labs, many investors believe that the approval of an XRP ETF is now within reach. Matthew Hougan, Chief Investment Officer at Bitwise, confirmed that this application represents the registration of a fiduciary entity in Delaware, thus highlighting the company’s commitment to entering the crypto ETF market.
The recent approval of ETFs based on Bitcoin and Ethereum has also paved the way for other digital assets, with XRP as a potential candidate. The growing interest in cryptocurrency-related investment products could encourage more asset management companies to follow Bitwise’s example and file their own applications for XRP ETFs.
The potential challenges on the supply chain road
Despite the optimism surrounding this ETF application, several challenges remain. The SEC could still decide to appeal the decision regarding Ripple before the end of the week, which could slow down the approval process for new ETFs. Speculations are running high as to whether Solana (SOL) could also position itself to become the next crypto asset to obtain an ETF, which could further delay XRP’s ambitions.
Brad Garlinghouse, CEO of Ripple Labs, expressed his belief that the approval of an XRP ETF is inevitable, while suggesting that we might see this materialize in 2025. If Solana receives its approval before XRP, it could set a precedent that influences the timeline of future applications. However, if the SEC does not appeal, it could quickly pave the way for a wave of applications for XRP ETFs, thereby increasing the chances of approval in the coming months.
