October 2024 kicked off with exhilarating news for the XRP community, as Bitwise Asset Management took a significant step by filing an application with the SEC to launch an exchange-traded fund (ETF) for XRP, the seventh-largest cryptocurrency by market capitalization. The announcement sent ripples of excitement through the market, as it signaled growing institutional interest in XRP amid a broader push for regulatory clarity.
Bitwise Sets The Stage For XRP ETFs
On October 2, Bitwise submitted its S-1 document to the SEC, signaling its intent to launch an XRP ETF. This move was quickly followed by Canary Capital, a well-known investment firm, which also announced plans to file for a similar ETF just one week later. The dual applications have created a buzz in the crypto community, as investors eagerly speculate on the potential impact of these products.
Ripple CEO Brad Garlinghouse, speaking on the Thinking Crypto podcast, expressed surprise at the timing of these filings. He noted that both applications came at a critical juncture, coinciding with ongoing discussions about the SEC’s potential appeal of the recent Ripple ruling. While the SEC did file an appeal shortly after Bitwise’s announcement, it did not deter Canary Capital from proceeding with its application.
A Predictable Trend
Despite his surprise at the timing, Garlinghouse was not shocked by the outcome. He pointed out that the landscape has been shifting since the SEC approved multiple Bitcoin ETFs earlier this year. Following those approvals, Garlinghouse speculated it was only a matter of time before similar products emerged for XRP and other cryptocurrencies, including Ethereum (ETH). His predictions seem to be unfolding, with the SEC now having approved ETFs for Bitcoin and Ethereum and two prominent issuers vying for XRP ETFs.
In addition to the XRP ETF filings, Garlinghouse praised Grayscale’s recent move to convert its Digital Large Cap Fund into a spot-based ETF. This fund includes five major cryptocurrencies, including XRP and Bitcoin. According to Garlinghouse, this shift validates his belief that investors are increasingly looking for diversified, basket-style investment options in the crypto space. He expects Grayscale’s ETF to draw significant capital to the XRP ecosystem, further bolstering the overall cryptocurrency market.
Since the launch of Bitcoin ETFs on January 10, they have attracted an impressive $21 billion in inflows, showcasing a robust appetite for crypto investment vehicles. Garlinghouse is optimistic that similar enthusiasm will emerge for XRP as the market evolves.
A Bright Future for XRP?
The buzz surrounding the potential XRP ETFs marks a pivotal moment for the cryptocurrency, suggesting a growing recognition of its value and legitimacy within the financial ecosystem. As institutional interest increases and regulatory clarity improves, XRP could see a significant influx of capital.
Also Read: Ripple vs. SEC – XRP Braces For 50% Price Swings As Legal Battle Escalates
With Ripple at the forefront of this movement, the coming months will be critical in determining whether these ETF applications will lead to a new era for XRP and the broader cryptocurrency market. Investors and enthusiasts alike are watching closely, eager to see how this developing story unfolds in the wake of increased regulatory scrutiny and evolving market dynamics.
As October progresses, one thing is clear: the XRP community has much to be excited about as the momentum for ETF approvals builds.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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