The U.S. Securities and Exchange Commission (SEC) has officially accepted Bitwise’s XRP spot exchange-traded fund (ETF) application, filed by Cboe BZX Exchange, a major step that brings XRP one step closer to becoming a regulated, mainstream investment asset.
When Could an XRP ETF Be Approved?
After the application is published in the Federal Register, #SEC will have 21 days for public comment before making a final decision, which can last up to 240 days. During this time, the regulator will evaluate the fund's compliance with investor protection standards.
Bitwise is not the only one in the race right now. The SEC has previously accepted XRP ETF applications from Grayscale and 21Shares, while WisdomTree and Canary Capital are still awaiting approval.
Is XRP ETF The Inevitable Trend?
The SEC’s active review of multiple crypto ETF applications suggests the agency may be loosening its stance on digital assets under President Donald Trump. ETFs $BTC and $ETH have paved the way for broader adoption, and XRP could be next.
Bloomberg ETF analysts James Seyffart and Eric Balchunas predict a 65% chance of approval for the XRP ETF—a fairly optimistic number given the growing investor interest in cryptocurrencies.
However, not everyone is optimistic. Katalin Tischhauser, Head of Research at Sygnum Bank, warned that not every token is eligible for an ETF. If too many ETFs are launched without sufficient demand, the market could be negatively affected.
Risks and Opportunities
One of the biggest challenges facing crypto ETFs is liquidity and market volatility. XRP is currently trading at $2.53, down 2.9% from its previous high, despite growing anticipation for the ETF.
To mitigate the risk of fraud and market manipulation, Bitwise has proposed using XRP price data from regulated US exchanges and establishing a transparent fund creation and redemption mechanism.
The launch of an XRP ETF would be a major step forward, but it also raises many questions about the sustainability of the market. Without careful preparation, it could become a "double-edged sword", creating investment opportunities but also causing many unpredictable fluctuations.
Will the SEC Greenlight an XRP ETF? The answer will become clear in the coming months.