Investment asset management firm Bitwise has submitted an XRP ETF application at a peculiar time. Recently, the company filed an S-1 registration form with the U.S. Securities and Exchange Commission (SEC). This submission has sparked speculation among experts regarding the future of this ETF application, with many focusing on the likelihood of the regulator blocking the request due to recent developments involving the SEC and Ripple 
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Uncertain Approval for Bitwise XRP ETF
About a year ago, Judge Analisa Torres ruled that XRP is not a security in the case between Ripple and the SEC. This decision granted a partial victory to the San Francisco-based firm, while the SEC achieved a partial win by ruling that Ripple violated securities laws by selling XRP to institutional investors without registration. The ruling affirming that secondary market sales are not securities has legalized trading of XRP Coin on exchanges.
Ripple was fined $125 million by the same judge two months ago in the SEC case. Initially, both parties did not indicate any intention to appeal the decision.
Comments from Appeals Court on Past SEC Cases
The appeals process is open and was planned to conclude on October 7, 2024. Subsequently, on October 2, the SEC filed an Appeal Notice to challenge XRP’s status as a security. This appeal could leave Bitwise’s XRP ETF application in limbo during the appeals process.
In the long run, if this appeal results favorably for the SEC, Bitwise may need to withdraw its newly submitted XRP ETF application. A victory for the Commission would confirm XRP’s status as a security, creating an obstacle for ETF approval.
Ripple’s legal officer, Stuart Alderoty, stated that Bitwise should not worry about the SEC’s appeal. He mentioned that the SEC would face embarrassment again in the appeals court.
Attorney Fred Rispoli believes that the XRP ETF will take a long time to resolve but thinks the SEC will ultimately approve the application, similar to the outcomes of Grayscale’s BTC ETF applications. Bitwise’s XRP ETF application faces an uncertain future due to the SEC’s current stance, but Ripple executives anticipate another humiliating defeat for the SEC.
