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Will US SEC Appeal Block Bitwise XRP ETF Launch?

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4 hours ago

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Investment asset management Bitwise chose to pursue an XRP ETF product at a very odd time. The firm recently filed an S-1 registration with the United States Securities and Exchange Commission (SEC). With this filing, there are already speculations amongst experts on what the future holds for this filing. Many are speculating that the regulator may block the filing, a stance gleaned from the recent development between the SEC and Ripple Labs Inc.

Bitwise XRP ETF Approval Is Uncertain

About a year ago, Judge Analisa Torres ruled in Ripple vs SEC case that XRP is not security. By this verdict, the Judge handed the San Francisco-based firm a partial victory. The regulator also secured a win as Judge Torres ruled that Ripple violated securities laws when it sold XRP to institutional investors without registration.

For this violation, Ripple was ordered by the same judge to pay $125 million penalty in the SEC lawsuit two months ago. At first, both parties did not signal any intent to appeal the verdict, but experts foresaw appeals.

The window for appeal was kept open but scheduled to expire by October 7, 2024. Eventually, the SEC filed a Notice of Appeal to challenge the XRP’s securities status on October 2. This filing has changed different narratives, including for Bitwise’s XRP ETF ambition.

In the long run, if this appeal favors the SEC, Bitwise may have to walk away from its newly filed XRP ETF. This is because a win for the Commission on this matter will mean that XRP is security, as it has always argued under Gary Gensler’s leadership.

This uncertainty might change the trajectory as commodities have a higher chance of securing ETF approvals.

Appeals Court Commentary on Past US SEC Cases

A post from Ripple CLO Stuart Alderoty suggests that Bitwise may not have to worry about SEC winning the appeal. The Ripple executive is very confident that SEC may face disgrace one more time at the Court of Appeals.

He took to X to share some of the responses that the regulator has received from the court in the past.

Alderoty cited the SEC’s appeal in its case with Aron Govil of Jacksonville, Florida. On getting to court, some of the responses handed out include “We do not agree with the SEC,”  “We are not persuaded,” by the SEC’s arguments and “The SEC’s counterarguments are unavailing.”

Attorney Fred Rispoli thinks it will be a long wait for the XRP ETF, but he also thinks it will go the same way Grayscale BTC ETF applications ended. This mean that no matter how long the delay last, the SEC will eventually approve the offering.

Read More: Bitwise Files For Another ETF Following XRP ETF Filing

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Bitwise Files For Another ETF Following XRP ETF Filing

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8 hours ago

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October 4, 2024

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Bitwise Asset Management had a new ETF filing – more precisely, it filed to convert three crypto futures ETFs from long-only strategies to strategies that rotate between crypto futures and US Treasuries exposure based on market trends. The ticker will be $BITC.

The above strategy, to be undertaken in aid of helping to reduce downside risk and foster long-term growth, shall be effective on or about December 3, 2024.

Bitwise File For ETF To Rotate Between Crypto and Treasuries

Bitwise has, therefore, submitted a proposal to the SEC for a new ETF focused on Bitcoin and treasuries. The company is reworking the investment strategy of its three crypto futures ETFs to rotate between cryptocurrency and US Treasuries through its proprietary strategy called “Trendwise.” On the given date, Bitcoin Strategy Optimum Roll ETF shall begin operating under Trendwise Bitcoin and Treasuries Rotation Strategy ETF (BITC).

Ethereum Strategy ETF shall be renamed Trendwise Ethereum and Treasuries Rotation Strategy ETF, and Bitcoin and Ether Equal Weight Strategy ETF shall operate under the new name of Trendwise BTC/ETH and Treasuries Rotation Strategy ETF.

BITC announcementBITC announcement
Credit: sec.gov

The new strategy dynamically responds to market trends and volatility with minimal perturbation. It also keeps the focus of its investments on long-term price appreciation.

According  to Bitwise CIO Matt Hougan:

“Momentum is a well-established factor in virtually every asset class, and it is powerful in crypto as well. The new Trendwise strategies capitalize on that momentum through a trend-following strategy that rotates between crypto and Treasuries exposure based on market direction. The goal is to help minimize downside volatility and potentially improve risk-adjusted returns.”

Bitwise relies on a proprietary signal of market momentum for crypto assets as its strategy. It includes Bitcoin and Ethereum and is determined by the 10- and 20-day exponential moving averages.

The funds would normally invest in the respective cryptocurrencies as long as the 10-day EMA was above the 20-day EMA-a condition. That indicates upward momentum and can shift to US Treasuries if that happens the other way around. The funds will maintain the current expense ratios and tax treatments. Also, there would not be any action item required to be taken by the existing investors.

Bitwise Wants to Expand Crypto Offerings with XRP ETF

This move adds to an event-filled year 2024 for Bitwise. This year, the company launched its first spot Bitcoin ETP in January and its first Ethereum ETP in July. In August, this world’s largest crypto index fund manager expanded its European presence by acquiring crypto fund provider ETC Group.

Recently, the crypto index fund manager Bitwise filed an S-1 registration with the SEC to offer a spot XRP ETF. Investors, if approved, would see direct exposure to the Ripple Labs crypto token. This would mean further inroads into the mainstream opportunities for crypto investment. The investments would go through regulated financial products in the US market.

The development marks another step in the expansion of crypto investment options. It also fuels optimism about broader access to XRP through a regulated financial product.

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Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries. Starting her career in 2005 as a lifestyle writer for Cosmopolitan in Croatia, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions. Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law, enjoys punk rock, chablis, and has a passion for shoes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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XRP Price To Hit $5 Despite US SEC Appeal, Top Analyst Predicts

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11 hours ago

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October 4, 2024

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The XRP price was on the investors’ radar this week, with the crypto noting a sharp decline following the latest development in the Ripple SEC case. In the latest development, the US SEC has filed a Notice of Appeal, signaling that the legal battle is far from over for now. This move has sparked speculations in the crypto market, triggering a massive selloff in the crypto’s price.

However, despite that, a renowned analyst claims that Ripple’s native crypto could hit $5, sparking market optimism. Besides, it also comes amid a slight recovery in the crypto’s price, which indicates that the crypto could witness further gains in the near future.

Top Analyst Predicts XRP Price To Hit $5

A renowned analyst remains optimistic about XRP price despite the recent decline in crypto following the US SEC’s notice of appeal in the Ripple case. EGRAG Crypto predicts that XRP could hit $5, citing two possible scenarios.

The analyst notes that if the SEC appeal leads to a similar situation as in December 2020, when XRP took a hit but still managed a 10X gain from the bottom, the cryptocurrency could reach the $5-$6 range. In addition, if Bitcoin hits a new all-time high between $80K-$100K, altcoins like XRP could follow suit with similar percentage gains.

XRP Price Analysis ChartXRP Price Analysis Chart
Source: EGRAG CRYPTO

Meanwhile, using Fibonacci levels, EGRAG Crypto estimates that if BTC hits $80K, Ripple’s native crypto could reach $2.31, and if BTC hits $100K, XRP could hit $2.88. The analyst’s predictions have sparked market optimism, especially after XRP’s slight price recovery.

XRP ChartXRP Chart
Source: EGRAG CRYPTO

The ongoing Ripple SEC case has led to market uncertainty, but analysts like EGRAG Crypto remain bullish on XRP’s long-term potential. While the appeal process unfolds, investors are cautious, but predictions like these offer a glimpse of hope for XRP’s future growth.

What’s Next In Ripple SEC Case?

According to the latest comments from pro-XRP lawyer Fred Rispoli, the Ripple SEC case is not likely to conclude before early 2026. This comment has sparked widespread speculations, while many in the crypto community have slammed the US SEC for prolonging the case.

On the other hand, another pro-XRP attorney Jeremy Hogan said that the latest US SEC appeal is a “big mistake” by the agency. This showcases his confidence in a potential win for the blockchain firm if it plans to cross-appeal.

In addition, Ripple CLO Stuart Alderoty has recently targeted the US SEC, while hinting at a potential cross-appeal in the case. Amid this, XRP price traded near the flatline today at $0.523, after crossing the brief $0.66 level earlier this week.

Meanwhile, the investors also remain optimistic about the crypto, especially after Bitwise filed for an XRP ETF, indicating growing institutional interest in the crypto. Besides, the latest bullish forecast by EGRAG Crypto has also bolstered market confidence, indicating a potential rally for the crypto in the near future.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Here’s What US SEC Is Appealing In XRP Lawsuit

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14 hours ago

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October 4, 2024

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As the Ripple vs SEC case proceeds further with the securities regulator submitting a “notice of appeal” in the Second Circuit court this week, the XRP community remains confused as to what exactly is the SEC appealing as it still needs to make a disclosure with Form C. However, the latest report suggests that the US SEC would be appealing the court’s remedies ruling involving the $125 million penalty to Ripple.

Ripple vs SEC Case Finds Key Details

In the notice of the SEC appeal submitted earlier this week, the securities regulator noted August 7 as the date of ‘final judgment’ without clarifying the specific issues that they intend to appeal. As a result, the XRP community remains confused about whether the SEC would be challenging the ruling on programmatic sales from July 2023 or the court-ordered $125 million penalty that Ripple must make for institutional sales on August 7.

However, a filing document verified by CoinGape shows that the plaintiff i.e. US SEC has appealed for the final court judgment on August 7, which involves the $125 million penalty payment by Ripple. Although the blockchain firm agreed to this payment, the securities regulator wasn’t happy with the court’s verdict in the Ripple vs SEC case. This is because the regulator demanded a $2 billion penalty from Ripple before the verdict.

Earlier today, Fox Business journalist Eleanor Terret said that in the Ripple vs SEC case, the regulator has yet to submit its Form C with the Second Circuit, which would specify further details regarding the appeal.

The agency needs to expedite this process to provide Ripple with clear guidance on how to proceed, she wrote. Furthermore, Ripple has a 14-day window from today to file a cross-appeal in XRP lawsuit if it chooses to take that action.

Conclusion of XRP Lawsuit and XRP Price Action

Some of the crypto lawyers have been weighing on the potential conclusion time for the Ripple lawsuit. Pro-XRP lawyer Fred Rispoli stated that a ruling from the 2nd Circuit Court is anticipated no earlier than early 2026. However, he mentioned that the appeal could be withdrawn at any time if both parties reach a settlement agreement.

The XRP price has faced strong selling pressure following the SEC appeal, and dropping by over 15%. At press time, the XRP price is trading at $0.52 with a market cap of $29.7 billion.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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