After the rejected Solana ETF applications, another provider is trying to launch an altcoin ETF. Issuer Bitwise has filed with the SEC for the first XRP ETF. However, approval seems unlikely before a change in the regulatory regime.
Following the overwhelming success of the spot bitcoin ETFs, the SEC is regularly receiving applications for additional crypto funds. A few months ago, VanEck and 21Shares attempted a Solana-based ETF. Instead of going through the months-long approval process that bitcoin and ethereum went through, the SEC outright blocked the funds. The reason given was a lack of clarity regarding the cryptocurrency's security status. The newly filed XRP ETF may have a slightly better chance.
Bitwise to launch first XRP fund
Bitwise filed its application with the Delaware Department of State's Division of Corporations, naming CSC Delaware Trust Company as its registered agent. The filing with the SEC followed shortly thereafter. Little else is known about the proposed fund at this time. Given the ongoing legal battle with the SEC, an XRP ETF is unlikely to succeed under the current administration.
In December 2020, the SEC filed a lawsuit against Ripple and two of its executives, accusing the company of distributing unregistered securities to investors. For two and a half years, Ripple fought the lawsuit until a U.S. court issued a first ruling in July 2023. The XRP token itself was found not to be a security, although the offering to institutional investors violated federal law. Ripple was ordered to pay $103 million in restitution, a payment the company has recently delayed.
Trump administration could pave the way
Bitwise's only hope would be a Trump victory in November. The presidential candidate has been a strong supporter of the crypto industry during his campaign. At a bitcoin conference, he stated to roaring applause that he would fire SEC Chairman Gary Gensler on his first day in office. This could put an end to the SEC's restrictive stance, potentially bringing altcoin ETFs - for XRP, Solana and other cryptocurrencies - back into consideration.
You’ve heard of the Fed Put. This is like the Trump Call.. filings for XRP or Solana or any other alt coins are basically like a cheap call option on a Trump win as Genz will be gone and anything’s poss. Harris wins no way these get approved, and the “call” expires worthless. https://t.co/mkpCbqEuQ4
— Eric Balchunas (@EricBalchunas) October 1, 2024
