Bitwise Applies to List an XRP ETF With the SEC, Signaling Confidence in the Asset

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.

Crypto asset management firm Bitwise has applied to the United States Securities and Exchange Commission (SEC) to list an XRP exchange-traded fund (ETF).

The move comes amid increasing demand for crypto ETF products, despite delays from issuers.

Bitwise’s Strategic Maneuver for an XRP ETF

Bitwise is an investment asset management firm that has shown a keen interest in crypto before. Prior to this SEC filing, the firm registered its spot XRP ETF product in the U.S. state of Delaware.

However, that registration at the time did not confirm its interest in an XRP ETF, leading to intense speculation from the public. Many expected Bitwise to take a couple of months before filing with the SEC, but the firm did it within 24 hours.

Now, experts are speculating on the possibility of approval, given the recent signals in the crypto space. Notably, Bitwise’s registration application came barely a week after Ripple CEO Brad Garlinghouse discussed the potential for an XRP ETF in an interview.

During the interview, Garlinghouse stated 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 suggests that Bitwise’s interest reflects confidence in XRP, which is known to be associated with Ripple Labs. Notably, there was a legal battle between Ripple and the SEC, a development that could come into play in the ETF race. This has affected the price performance of XRP as the lawsuit continues, with the SEC having the option to appeal.

However, the asset management firm seems to believe 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 to be a credible “crypto-native” that makes strategic decisions. Hence, he emphasized that the asset firm, which is 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, as 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

Apart from XRP, asset managers have also made moves for other crypto ETF products.

Solana and Dogecoin are two assets that prospective issuers are considering.

Two asset managers, 21Shares and VanEck, filed applications for a Solana ETF. Their filing came even before the U.S. SEC approved a spot Ethereum ETF for trading. Although these filings have been pulled down on the DTCC website, regulatory approval may not come until 2025.

Meanwhile, there is speculation that issuers may push for Dogecoin ETF products next year. The asset has attracted interest from the market, with stakeholders confident that an ETF might increase exposure to institutional investors.

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