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After much speculation, Bitwise finally applied to the United States Securities and Exchange Commission (SEC) to list an XRP ETF. The quest for crypto ETF products has recently increased despite issuers’ delays.
Bitwise’s Strategic Move Toward an XRP ETF
Bitwise is an investment asset management firm with a deep focus on crypto. Before this SEC filing, the firm registered for its spot XRP ETF product in the U.S. state of Delaware.
However, the registration at the time did not validate its interest in XRP ETF, drawing intense speculation from the public. Instead of the couple of months that many expected Bitwise to take before filing with the SEC, the firm made it 24 hours.
Experts are now speculating on the possibility of approval based on the signals in the crypto space. Notably, the Bitwise registration application occurred barely a week after Brad Garlinghouse, Ripple CEO, discussed the possibility of an XRP ETF in an interview.
During the interview, Garlinghouse maintained that the approval and increase in ETFs could transform the crypto market. According to him, ETF products could increase access to cryptocurrencies and liquidity.
Insights from ETF Analyst Nate Geraci
Nate Geraci, a renowned authority in the ETF space, has highlighted the significance of Bitwise’s move. Geraci’s analysis shows that Bitwise’s interest reflects confidence in XRP, which is associated with Ripple Labs. Notably, there was a legal battle between Ripple and the SEC, a development worth considering in the ETF race. This has affected the price performance of XRP as the lawsuit lingers, given that the SEC may yet appeal.
However, the asset management firm has faith that XRP will overcome its regulatory challenges. Additionally, Geraci mentioned that it is likely a “call option on the November election.”
The analyst speculated about a possible change in the U.S. SEC’s leadership, which might change the narrative.
Geraci considers Bitwise a credible “crypto-native” that makes strategic decisions. Hence, he emphasized that the asset firm, known for well-thought-out decisions, would not engage in speculative play.
Based on this analysis, Geraci maintained that an XRP ETF will eventually emerge. In the short term, politics might play a significant role in the product’s emergence. Republican and Democratic Party presidential candidates appear poised to woo crypto players and might shape policies to favor Bitwise.
Additionally, the ETF analyst believes that an XRP product remains inevitable, and Bitwise has positioned itself strategically as a first-mover. Geraci also predicted that the next move will likely involve full asset tokenization.
Future Outlook for Crypto ETFs Beyond XRP
Aside from XRP, asset managers have also made moves for other crypto ETF products.
Solana and Dogecoin are two assets prospective issuers are seriously considering.
Two asset managers, 21Shares and VanEck, have filed applications for Solana ETF. Their filing came even before the U.S. SEC approved a spot Ethereum ETF for trading. Even though these filings have been pulled down on the DTCC website, regulatory approval may not come until 2025.
Similarly, there is speculation that issuers may push for Dogecoin ETF products next year. The asset has attracted interest from the market, with stakeholders confident an ETF might increase exposure to institutional investors.