- SEC initiates 90-day review of Bitwise’s XRP ETF, targeting regulated access to cross-border payment token distinct from Bitcoin.
- Ripple’s 2023 legal win over SEC cited as precedent for XRP’s non-security classification in ETF filing.
- ETF approval may lower fees, boost liquidity, and avoid self-custody risks for XRP investors via Cboe listing.
The U.S. Securities and Exchange Commission (SEC) has formally begun evaluating a proposal for a spot exchange-traded fund (ETF) centered on XRP, submitted by investment firm Bitwise. The regulatory agency confirmed the filing’s acceptance on Wednesday, triggering a review period that may extend up to 90 days.
Approval would mark the first ETF tied to XRP, a digital asset designed to facilitate cross-border payments, providing investors regulated exposure through mainstream financial channels.
Cboe BZX Exchange, which lodged the application on February 6, seeks to list Bitwise’s ETF as a Commodity-Based Trust Share. The SEC must now analyze the proposal’s compliance with regulatory standards, focusing on market safeguards and investor protections.
Bitwise’s filing emphasizes XRP’s role as a payment tool, contrasting it with Bitcoin and Ethereum, which are frequently positioned as speculative assets or stores of value. The document also notes XRP’s decentralized ledger infrastructure, engineered to process transactions faster and cheaper than traditional systems.
The proposal draws parallels between XRP’s market structure and those of Bitcoin and Ethereum, both of which recently gained SEC approval for spot ETFs. It highlights XRP’s liquidity and the resilience of its trading ecosystem, factors the agency has historically prioritized.
Additionally, the filing cites a 2023 federal court ruling that determined programmatic XRP sales by Ripple Labs did not constitute securities offerings—a decision that could influence the SEC’s assessment.
If greenlit, the ETF would allow investors to trade XRP through brokerage accounts without needing to custody the asset directly. Bitwise argues that this structure would mitigate risks associated with self-storage while improving price transparency.
The filing also suggests that competition among ETF providers might pressure management fees downward, benefiting retail participants.
The current price of XRP (Ripple) is $2.53 USD, reflecting a 5.66% decline in the past 24 hours. Over the last week, XRP has increased by 4.74%, showing signs of volatility but maintaining an overall positive trend. Over the past month, XRP has gained 20.1%, and in the last year, it has surged 354.3%, making it one of the top-performing assets in the crypto market.
XRP’s market capitalization currently stands at $146.26 billion USD, positioning it as the third-largest cryptocurrency by market cap. The 24-hour trading volume is approximately $4.55 billion USD, indicating strong liquidity and active trading.
The circulating supply is 57.81 billion XRP, out of a total supply of 99.99 billion XRP, reinforcing its widespread availability while still maintaining scarcity.
From a technical perspective, XRP has been fluctuating within a 24-hour range of $2.48 to $2.68 USD. The key support levels to watch are $2.50 and $2.40 USD, where buyers may step in to prevent further downside movement.
On the upside, resistance is found at $2.70 and $3.00 USD. If XRP successfully breaks above $2.70, it could make an attempt to reclaim the $3.00 psychological level, with further potential to move towards its all-time high of $3.40 USD
