XRP, the seventh largest cryptocurrency by market capitalization, has joined the overall crypto market in a downtrend after it sank more than 4% lower within the last 24 hours. Even with the recent hype towards an ETF filing, the token remains in the red.
On September 30, Bitwise, a significant player in the universe of crypto index funds, submitted a new application for the XRP ETF in Delaware, which spurred a discussion in the community. Doubts surfaced regarding the legitimacy of the filing, however, Bitwise proved that the filing was not fake in any way. Brad Garlinghouse of Ripple said that the XRP ETF in the United States is bound to launch.
Also Read: Ripple CTO David Schwartz Backs XRP Token Burn Over Complex Alternatives to Boost Network Economy
Industry Experts Weigh In on ETF Prospects
Some think it is impossible to achieve approval for XRP ETFs soon, but the filing is still valuable. The president of The ETF Store, Nate Geraci, said that Bitwise is well-established and does not act impulsively. He dwelled on long-term advantages for the filing and suggested that Bitwise might be gearing up for something. Also, in 2021, CME Group launched real-time XRP indices and reference rates. Similarly, cash-settled XRP futures were brought into the market by Bitnomial, a regulated crypto derivatives marketplace, in August. According to the analysts, these steps could pave the way for an XRP ETF.
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Geraci thinks that, perhaps, XRP ETF is not about to happen, though Bitwise’s approach shows that it is in for the long haul. This may be why traders did not react much to the filing in the market, as everyone appears to be expecting a new performance instead of a filing.
Conclusion
The filing by Bitwise can be seen as the next step in the possible development of XRP in the financial market. However, the chances of receiving instant approval are not high, which remains an apparent reason for the poor performance of the cryptocurrency. It may take a while before investors see an XRP ETF come to fruition, but it will be worth the wait.
Also Read: Massive 105 Million XRP Transfer Sparks Interest Amid Market Uncertainty
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.