One step came from the SEC for the XRP ETF application. The US Securities and Stock Exchange Commission (SEC) officially evaluated the application for the XRP Stock Exchange Investment Fund (ETF) by Bitwise. This process is seen as a step towards the expansion of crypto investment products after the successful launch of Bitcoin and Ethereum ETFs.
How will the XRP ETF process work?
Bitwise’s XRP ETF application was presented via the CBOE BZX stock exchange and officially accepted by the SEC. This application has previously participated in similar XRP ETF requests made by Grayscale and 21shares. Applications for other companies such as Wisdomre and Canary Capital are still in the evaluation process.
The SEC’s review process will begin after the application was published in the Federal Register. While a 21 -day public opinion comment process is foreseen, the final decision may take up to 240 days.
Possibility of approval of XRP ETFs
Despite the positive developments in crypto markets, the XRP price is currently $ 2.53 and decreases by 2.9 %compared to CONKECKO data. However, increasing optimism continues to approval of ETFs.
https://x.com/jseyff/status/1889035896428663261
Bloomberg analysts James Seyffart and Eric Balchunas evaluated the likelihood of XRP ETFs as 65 %. Following the successful launch of Bitcoin and Ethereum ETFs, XRP is thought to be more accessible for traditional investors.
Competition for XRP ETF is hot
The CBOE exchange plays a leading role in the XRP ETF process. Four separate applications have been made on behalf of Wisdomre, Bitwise, 21shares and Canary Capital, and the SEC is expected to make a comprehensive assessment on these applications.
However, some experts in the sector warn that new crypto ETFs should not be rushed. Sygnum Bank Research President Katalin Tischhauser emphasizes that corporate investors should show sufficient demand for ETFs to succeed.
Effect on the Market and Future expectations
The bids in ETF applications include certain security measures to prevent price manipulation. Price data from trade platforms in accordance with the US regulations and making creation-reception mechanisms transparent aims to provide fair pricing in the market.
If XRP ETFs are approved, investors will be able to access the XRP through an investment tool without directly holding the digital presence. This can facilitate the entry of traditional investors to the crypto market.
