Bitwise recently filed for an XRP ETF, sparking discussions among industry experts about how the upcoming US election might impact its approval.
The SEC’s ongoing appeal against Ripple Labs adds uncertainty, potentially delaying the ETF’s fate. Bitwise’s filing, along with another from Canary Capital, highlights a growing interest in direct crypto asset funds, although regulatory clarity remains a challenge.
XRP, valued at $33 billion, is seen as a key player in cross-border payments. Analysts like Neena Mishra suggest that a Trump victory in the 2024 election could lead to a more favorable regulatory environment for crypto, possibly resulting in a change of SEC leadership. Conversely, if Vice President Harris wins, the ETF may face more hurdles under the current SEC chair, Gary Gensler.
The SEC has 240 days to respond to Bitwise’s application, but the ongoing legal battle with Ripple complicates matters. If the SEC’s appeal is successful, the chances of the ETF’s approval could diminish significantly.
Despite these challenges, recent approvals of spot bitcoin and ether ETFs indicate a potential shift in the SEC’s stance, with some optimism from industry players about future developments.
