Bitwise’s XRP ETP Application and its Significance
Bitwise Asset Management’s recent filing for an XRP Exchange Traded Product (ETP) has garnered significant attention. If approved, the XRP ETP could provide institutional investors with streamlined access to XRP, boosting demand. This move comes amid the backdrop of Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). On September 30, 2024, Bitwise submitted a Form S-1 for the ETP, which seeks to create a trust entity as the foundation for an XRP ETF.
However, the approval of the XRP ETP is highly dependent on the SEC’s legal actions against Ripple. The SEC has until October 7, 2024, to decide whether to appeal the ruling from Judge Torres in July 2023, which found that programmatic sales of XRP do not violate securities laws. If the SEC appeals, it could severely affect the approval chances of Bitwise’s XRP ETP.
The SEC Appeal’s Impact on XRP Holders
For XRP holders, the SEC’s decision is crucial. The approval of an XRP ETP could significantly drive demand for the asset, potentially pushing prices toward $1 and beyond. However, if the SEC appeals, experts like Alex Thorn from Galaxy Digital predict that the chances of ETP approval would drop to “near zero,” sending XRP prices plummeting to as low as $0.40. This looming uncertainty has already caused XRP to trade in the red, as investors brace for potential negative outcomes.
Ripple’s Desperation for ETF Approval
Ripple’s eagerness to have an XRP ETF approved might have propelled the SEC to consider an appeal. Given the recent push from Ripple and other crypto firms to secure regulatory approval for various exchange-traded products, the SEC may feel the pressure to maintain its stance on XRP being classified as a security. If Ripple were to successfully get an XRP ETP approved, it could undermine the SEC’s authority and influence in future regulatory disputes.
Will XRP Miss This Bull Run?
One of the biggest concerns for XRP holders is whether the asset will miss out on the upcoming bull run due to regulatory challenges. While Bitcoin and Ethereum have surged in previous bull runs, XRP has often lagged behind, partly due to its legal troubles with the SEC. The decision to appeal or not will play a pivotal role in XRP’s ability to participate in the next market rally. If the SEC appeals, XRP could miss this cycle once again, failing to catch the momentum that other assets enjoy.
Price Speculation and Future Outlook
If no appeal is made, XRP could rally toward $1 and possibly surpass it, as demand from institutional investors increases through the Bitwise ETP. However, if the SEC decides to appeal, the market could see a steep decline in XRP’s price, potentially pushing it down to $0.40 or lower. This uncertainty has left many XRP holders on edge, as the next few days leading up to October 7, 2024, could determine the asset’s short-term fate.
Conclusion
The SEC’s decision regarding an appeal is pivotal not only for Ripple but also for XRP holders and the broader crypto market. The approval of Bitwise’s XRP ETP has the potential to be a game-changer, providing much-needed liquidity and institutional interest. However, Ripple’s legal challenges and the SEC’s potential appeal cast a shadow over this possibility. XRP holders should brace themselves for volatility, as the outcome of the SEC’s decision will likely have lasting impacts on XRP’s price and its chances of participating in the next bull run.
