Gushiken Yona
A tremor has rippled through the cryptocurrency world, emanating not from a sudden price swing, but from a strategic filing in the heart of traditional finance. Bitwise, the asset management firm known for its measured approach to crypto investments, has set its sights on an XRP ETF, sending a clear signal that the lines between Wall Street and the Wild West of crypto are blurring faster than ever.
The news broke with the quiet hum of a Delaware filing, revealing Bitwise’s registration of a trust entity specifically designed for an XRP ETF. While the market’s initial reaction was muted, the implications of this move are anything but quiet. As Nate Geraci, President of The ETF Store and a prominent voice in the ETF space, said on X, “Bitwise positioning to file for an XRP ETF is highly noteworthy IMO… Bitwise is a highly credible crypto-native fund firm that doesn’t just throw stuff at the wall.”
As it turned out, this is not just another speculative bet on a volatile asset but more of a calculated move by a firm known for its meticulous approach, a firm that wouldn’t gamble its reputation on a long shot. Geraci, echoing the sentiment of many analysts, believes this is a strategic play with a longer-term vision: “IMO, Bitwise [has a] longer-term roadmap is to offer this in an ETF wrapper. The next step will be full tokenization.”
The timing of Bitwise’s move is particularly intriguing, coming on the heels of a landmark court ruling that clarified XRP’s regulatory status. The July 2023 decision, which determined that XRP itself is not inherently a security, has seemingly opened a pathway for financial products like an XRP ETF.
However, the regulatory landscape remains complex, and the specter of political influence looms large. Bloomberg Intelligence ETF analyst Eric Balchunas offered a blunt assessment, dubbing the situation “the Trump Call,” suggesting that the approval of an XRP ETF, or any alt-coin ETF for that matter, hinges on the outcome of the upcoming presidential election. “Harris wins,” he declared, “no way these get approved.”
Despite the uncertainty, the potential impact of an XRP ETF is undeniable. It could provide a readily accessible gateway for institutional and retail investors to gain exposure to XRP without directly holding the cryptocurrency, potentially propelling XRP further into the mainstream financial arena. As Ripple CEO Brad Garlinghouse confidently proclaimed following the approval of Bitcoin and Ether ETFs, an XRP ETF is “inevitable.”
Bitwise’s filing, while just the first step in a potentially lengthy process, has sent a powerful message: the demand for regulated crypto investment products is growing, and the walls separating traditional finance from the crypto world are crumbling. Whether this latest move marks the start of a flood of alt-coin ETFs or simply a ripple in the water remains to be seen.
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
