XRP Spot ETFs Stir the Crypto Community as Bitwise Files for SEC Approval

A surge of interest in XRP spot ETFs has recently stirred the crypto community, as Bitwise filed for XRP-based ETFs.

A recent filing by Bitwise for XRP-based exchange-traded funds (ETFs) has sparked a wave of interest in the crypto community. However, the move also came as a surprise to some, as many expected Solana to be the next major focus after companies like VanEck filed for a Solana ETF, only to later withdraw.

Now, some speculate that the filings might be a strategic move ahead of the upcoming U.S. election. Speaking on the Thinking Crypto podcast, Nate Geraci, president of The ETF Store, suggested that these companies might be preparing for a potentially more crypto-friendly administration.

While former President Donald Trump has previously hinted at a positive stance on cryptocurrency, and some believe his return to office could increase the chances for XRP and other crypto ETFs to gain regulatory approval, Geraci highlighted the challenges ahead for XRP spot ETFs.

According to Geraci, unlike Bitcoin and Ether, which have CME-traded futures contracts, XRP lacks a similar infrastructure, making it harder for regulators to monitor the market and ensure its integrity.

The SEC has typically required a surveillance-sharing agreement with regulated exchanges to reduce risks of market manipulation. However, as Geraci pointed out, most crypto exchanges where XRP is traded are currently unregulated, creating another layer of complexity for SEC approval.

Adding to the complexity is the Ripple lawsuit, which has brought into question the classification of XRP. The SEC has suggested that once crypto tokens like XRP are widely traded, they may no longer qualify as securities. If XRP is viewed similarly to Bitcoin—as a non-security commodity—this could potentially ease regulatory concerns.

However, without a regulatory framework and an established surveillance-sharing mechanism, Geraci remains skeptical about XRP ETFs gaining quick approval.

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