SEC Begins Evaluating New Crypto ETF Application
The race to launch another cryptocurrency-based exchange-traded fund in the U.S. is heating up. Bitwise recently submitted a key application that has now been officially accepted for review by the Securities and Exchange Commission, signaling important progress in the quest for approval.
The SEC’s Review Process Commences
The SEC’s review process has begun now that the filing is acknowledged. The details of the submission are available in a formal notice published in the Federal Register. Interested parties have 21 days to provide their feedback. After this period, the Commission can either approve, reject, or extend the review process concerning the proposed ETF.
The Broader Landscape of Crypto ETF Applications
This event takes place after similar applications from other companies were previously acknowledged. While some ETF proposals have already cleared the initial regulatory hurdle, other submissions from various market participants are still awaiting evaluation.
Market Response and Existing Obstacles
Unlike previous instances that triggered immediate market excitement, this recent filing did not cause an immediate increase in XRP’s price. In reality, the asset, together with a large portion of the cryptocurrency market, saw a decline of more than 5% in a single day, falling below $2.5.
Legal Complications and Expert Perspectives
Despite the favorable regulatory acknowledgment, the SEC is also engaged in a legal battle with Ripple. Many specialists believe that resolving this legal challenge is necessary before an ETF that includes XRP can be approved.
It’s worth noting that some industry analysts, notably those at Bloomberg, have voiced reservations about XRP’s prospects compared to other digital assets seeking ETF status. They’ve pointed to Litecoin and Dogecoin as potentially more viable options in the evolving market.
Ripple’s Leadership Maintains a Positive Outlook
Amid regulatory assessments and market volatility, Ripple’s CEO is still optimistic about the future of the company’s product. He has repeatedly stated his belief that an XRP ETF will eventually be launched, demonstrating his continued optimism despite current challenges.
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Tyler Matthews, known as “Crypto Cowboy,” is the newest voice at cryptovista360.com. With a solid finance background and a passion for technology, he has navigated the crypto world for over a decade. His writing simplifies complex blockchain trends with dry American humor. When not analyzing markets, he rides motorcycles, seeks great coffee, and crafts clever puns. Join Crypto Cowboy for sharp, down-to-earth crypto insights.