Will XRP Spot ETF Be Approved? Analyst Announces the Condition!

Krypto para Fund manager Bitwise Asset Management has filed for an XRP Spot ETF in the US, in a move that Ripple supporters see as a significant development.

The filing comes amid Ripple’s ongoing legal battles with the U.S. Securities and Exchange Commission (SEC), which has accused the company of raising $1.3 billion through unregistered XRP sales.

XRP Spot ETF Application, Preparation for Trump’s Possible Victory, According to Analyst

A court ruling in 2023 found that XRP is not a security when traded on public exchanges. However, institutional sales of XRP have been deemed to violate securities laws because they are considered investment contracts under US law and require proper registration. The legal dispute resulted in Ripple being ordered to pay a $125 million penalty. Despite the decision regarding secondary sales, it remains unclear whether this will affect the SEC’s decision on Bitwise’s ETF application.

Katalin Tischhauser, head of investment research at Sygnum, explained that Bitwise’s XRP Spot ETF application may not depend on whether the SEC considers XRP a security. Instead, it focuses on the SEC’s requirements for an “auditable market.” Currently, only Bitcoin and Ethereum have regulated futures markets on the Chicago Mercantile Exchange (CME), which has been a key factor in gaining ETF approvals for these assets.

Tischhauser suggested Bitwise may have filed the XRP Spot ETF application to “start the clock” in anticipation of a possible change in SEC policy after the 2024 US presidential election if Trump wins.

Ripple CEO Brad Garlinghouse has previously stated that XRP and other cryptocurrency ETFs are “inevitable” following the approval of Ethereum ETFs earlier this year. While Bitcoin ETFs have attracted a lot of attention, attracting $18 billion in fresh capital, it remains unclear whether demand for an XRP ETF will reach that level.

*This is not investment advice.