In a move that could reshape the landscape of cryptocurrency investments, renowned asset manager Bitwise has filed for a spot XRP Exchange-Traded Fund (ETF), as discovered on the State of Delaware’s Division of Corporations’ website. This filing, dated September 30, 2024, represents a significant milestone for XRP enthusiasts and the broader crypto community.
Unpacking the Filing
Bitwise’s filing has generated buzz, but experts caution that this does not guarantee immediate registration approval by the U.S. Securities and Exchange Commission (SEC). The registered agent for the filing is CSC Delaware Trust Company, indicating the early stages of a complex regulatory process. As the crypto landscape evolves, similar moves are being observed from other significant players. Grayscale Investments, for example, recently hinted at the possibility of an XRP ETF through its launch of the Grayscale XRP Trust, designed to provide accredited investors with exposure to the asset.
Ripple CEO Brad Garlinghouse has consistently emphasized the inevitability of an XRP ETF in the U.S., aligning it with other major cryptocurrencies like Cardano and Solana. At the Consensus 2024 conference, Garlinghouse noted that while the path to an IPO for Ripple has been obstructed by SEC actions, the potential for an XRP ETF is gaining traction.
Market Reaction – XRP’s Price and Trading Volume
As news of the ETF filing unfolds, XRP’s price has experienced a slight dip, joining a broader market pullback. The asset declined by 3.6% to fall below $0.60. However, a remarkable surge in trading volume—up by 65%—saw approximately $2.8 billion changing hands, reflecting a robust interest in XRP. Notably, on-chain metrics are also looking promising, with a 1.16% increase in active addresses over the last 24 hours, indicating that more users are interacting with the network.
Despite the positive trading volume, a looming selling pressure exists, as 1 billion XRP (valued at over $621 million) has been released from escrow accounts through multiple transactions. Historically, this increase in exchange reserves often signals potential sell-offs, with reserves rising by 0.61% to reach 3.111 billion XRP. Nevertheless, traders remain optimistic, with 60.09% holding long positions against 39.91% of short positions.
A Promising Future?
Analysts, including market expert Amonyx, are contemplating the potential for XRP to rebound sharply from its current bearish trend. Amonyx posits that XRP could target the significant price point of $589 by the end of the bullish cycle, drawing parallels to historical price movements. The analyst references two previous instances of massive symmetrical triangles, one of which culminated in a staggering 75,000% surge between late 2017 and early 2018.
Also Read: SEC Appeals Ripple Ruling – $125M Fine At Stake In High-Profile XRP Battle
After a prolonged pullback of about seven years, Amonyx believes XRP is on the verge of breaking out of another symmetrical triangle, possibly propelling the asset into the triple-digit range.
The filing for a spot XRP ETF by Bitwise marks a pivotal moment for the cryptocurrency market, particularly for XRP. While the path to approval remains uncertain, the burgeoning interest in XRP and the favorable trading metrics suggest that this asset could be on the brink of a significant transformation. As the market navigates these developments, investors will be closely watching XRP’s next moves, as historical patterns may indicate a bright future ahead.
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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