Ripple bulls are celebrating after crypto fund manager Bitwise Asset Management submitted an application for a spot XRP ETF in the United States.
This move comes amid growing optimism following a recent court ruling that favored Ripple in its ongoing legal battle with the Securities and Exchange Commission (SEC).
Bitwise May Have Filed for an XRP ETF in Case of a Trump Victory
Ripple has been entangled in a legal dispute with the SEC since 2020, which accused the company of raising $1.3 billion by selling XRP as an unregistered security. While a 2023 court ruling determined that XRP is not a security when traded on public exchanges, it also found that institutional sales of XRP violated securities laws.
The SEC has consistently argued that spot crypto ETFs cannot be listed on U.S. exchanges until there is a highly correlated, regulated futures market for the corresponding asset. Such a market currently only exists for Bitcoin and Ethereum.
Katalin Tischhauser, head of investment research at crypto bank Sygnum, believes that Bitwise’s XRP ETF application is a strategic move aimed at “starting the clock ticking” in anticipation of a potential change in the SEC’s stance following the upcoming U.S. presidential election. With the possibility of a new administration and a shift in regulatory priorities, Bitwise may be hoping to capitalize on a more favorable environment for crypto ETFs.
Ripple Labs CEO Brad Garlinghouse has expressed confidence in the inevitability of XRP ETFs, citing the recent approval of Ethereum ETFs as a positive precedent. However, the question remains whether there will be sufficient demand to justify an XRP ETF.
