SEC Acknowledges Bitwise’s Spot XRP ETF Filing, Adding to Growing List of Crypto Fund Proposals

SEC Reviews Bitwise's Spot XRP ETF Filing Amid Growing Institutional Interest

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  • The SEC has acknowledged Bitwise’s spot XRP ETF filing, joining other major firms seeking approval in the crypto ETF space.
  • The regulatory body will allow a 21-day public comment period, with a final decision expected within 240 days.
  • Multiple firms including Grayscale and 21Shares have submitted similar XRP ETF proposals, indicating growing institutional interest.
  • XRP currently trades at $2.53, down 2.9%, despite increasing optimism around crypto ETFs.
  • Industry experts estimate a 65% probability of XRP ETF approval, though concerns exist about market readiness for multiple crypto ETFs.

The U.S. Securities and Exchange Commission has initiated its review of Bitwise’s spot XRP exchange-traded fund proposal, submitted through Cboe BZX Exchange, marking another significant development in the expanding cryptocurrency ETF landscape.

The acknowledgment follows similar filings from industry leaders including Grayscale and 21Shares, while proposals from WisdomTree and Canary Capital remain under consideration. This wave of applications comes as the cryptocurrency market experiences increased institutional acceptance.

The regulatory process includes a mandatory 21-day public comment period once published in the Federal Register, with the SEC maintaining authority to approve, deny, or extend its review for up to 240 days. Bitwise’s proposal outlines comprehensive security measures, including sourcing XRP prices exclusively from U.S.-compliant trading platforms and implementing robust creation-redemption mechanisms to prevent market manipulation.

Bloomberg ETF analysts James Seyffart and Eric Balchunas have projected a 65% likelihood of XRP ETF approval, following the successful launches of Bitcoin and Ethereum ETFs. However, industry experts urge caution. "With much of the crypto market seen as speculative or hype-driven, healthy demand is needed for institutional investors to make an allocation," states Katalin Tischhauser, Head of Research at Sygnum Bank.

According to CoinGecko data, XRP currently trades at $2.53, showing a 2.9% decline despite the growing institutional interest. Market observers note that while crypto ETFs represent a significant step toward mainstream adoption, success will ultimately depend on sustainable investor demand and market stability.

The proliferation of crypto ETF applications reflects a broader shift in regulatory attitudes, though experts emphasize the importance of careful market development. As Tischhauser cautions, "Tokens with lower volumes are subject to higher volatility, which could lead to larger losses than institutional investors are used to."

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