By Key Points
- Bitwise files for an XRP fund in Delaware on September 30, 2024.
- Filing is seen as a strategic move ahead of potential post-election regulatory shifts.
- Ripple Labs is still entangled in a legal battle with the SEC, affecting the XRP fund’s prospects.
- XRP price dropped by 10%, largely due to broader market sell-offs driven by geopolitical tensions.
The XRP fund filing by Bitwise has ignited excitement in the crypto community. As the possibility of approval increases after the U.S. elections, the filing represents a crucial move by Bitwise to introduce a Ripple-focused fund.
This action adds more weight to the ongoing debate surrounding XRP’s regulatory status and its evolving legal landscape.
Bitwise positioning to file for XRP ETF is highly noteworthy IMO…
In short-term, this is likely call option on November election.
But Bitwise is highly credible crypto-native fund firm that doesn’t just throw stuff at wall.
That’s simply not in their DNA.
This is strategic.
— Nate Geraci (@NateGeraci) October 2, 2024
Bitwise Files XRP Fund in Delaware
On September 30, 2024, Bitwise submitted an application for an XRP fund in Delaware. This filing is recorded with the state’s Division of Corporations, marking Bitwise’s initial step toward launching an exchange-traded fund that could expose investors to XRP.
However, it’s important to recognize that this filing does not yet reflect a formal submission to the SEC, which will be a necessary step for full approval.
ETF expert Nate Geraci called this filing a “strategic” move. He noted that Bitwise is positioning itself ahead of potential regulatory changes that many market analysts expect following the November U.S. elections.
Geraci commented, “This could be seen as Bitwise’s preparation for favorable regulatory shifts that may arise post-election, especially regarding XRP’s status.”
Many within the industry are optimistic that clearer guidelines for XRP fund products could emerge after the elections, which may unlock the potential for institutional investment into XRP.
Ripple’s Ongoing Legal Challenges
The filing for the XRP fund comes at a critical juncture for Ripple Labs, the company behind XRP, as it continues to fight a legal battle against the SEC.
The agency has accused Ripple of illegally selling XRP as unregistered securities, triggering a long-running lawsuit that began in 2020.
In a major decision earlier this year, Judge Analisa Torres ruled that XRP is not a security when sold to the general public, though it is considered one when sold to institutional investors.
Ripple was fined $125 million, much less than the original $2 billion the SEC sought. This ruling provided partial relief for Ripple, but the legal fight is far from over. The SEC has until October 7 to file an appeal, which could prolong uncertainty around XRP’s regulatory status.
XRP Price Under Pressure Amid Global Events
Despite the excitement surrounding Bitwise’s XRP fund filing, the price of XRP has not reacted positively.
As of early October, XRP’s value sits at $0.60, a 10% drop from the beginning of the month. This price decline comes during a broader crypto market downturn, driven by increased geopolitical tensions, particularly in the Middle East.
Investors have adopted a cautious, risk-off approach, which has tempered any potential bullish sentiment from the XRP fund news.
Market analysts suggest that the filing’s impact may remain muted until there is more regulatory clarity, especially after the U.S. elections.
What’s Next for the XRP Fund?
While the filing for an XRP fund is an exciting development, its approval depends on several factors. Ripple Labs’ ongoing lawsuit with the SEC and the results of the U.S. elections could have a major influence on the fund’s fate.
Market participants believe that if political shifts bring more favorable crypto regulations, an XRP fund may receive approval sooner rather than later.
For now, Bitwise has positioned itself ahead of the curve, anticipating that regulatory clarity will come.
If successful, the XRP fund could become one of the first Ripple-focused funds on the market, potentially paving the way for more institutional interest in the cryptocurrency space.
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