Ripple’s XRP ETF nears breakthrough: SEC acknowledges new Bitwise filing
Will SEC rescind Ripple lawsuit as it advances XRP ETF applications by various issuers?
- SEC signed off Bitwise XRP ETF’s 19b-4 filing.
- Analysts speculate that the SEC could drop Ripple charges.
The U.S. SEC (Securities and Exchange Commission) has acknowledged Bitwise’s spot XRP ETF 19b-4 filing. This was the third filing signed off by the regulator after the Grayscale and 21Shares applications.
At the time of writing, only Canary Funds and Wisdom Tree submissions were yet to be greenlighted by the agency. However, the move by the new SEC has been viewed as positive for Ripple and its ongoing lawsuit.
Will SEC rescind Ripple’s lawsuit?
In a recent podcast, Bloomberg ETF analyst Eric Balchunas, quoting Scott Johnson, stated that the update was positive. He speculated that the updates could signal the likely dismissal of Ripple’s lawsuit.
Balchunas said,
‘Scott Johnson thought this was a direct sign that they would have to rescind these lawsuits. You can’t approve it if you see it as a security.”
Johnson is a reputable finance lawyer who has made some accurate predictions on crypto ETFs.
That said, the prediction site Polymarket priced a 78% chance of XRP ETF approval by the end of 2025.
On the price chart, XRP was among the top altcoins that have managed to hold onto its post-US election gain despite the weaker market sentiment. It has been up 416% since last November and was valued at $2.5 at press time.
Over the same period, the Exchange Supply Ratio declined from over 0.032 to 0.028. The metric gauges exchange supply and, by extension, sell pressure.
The downtrend suggested that overall XRP sell pressure was low, perhaps explaining how the altcoin has held its post-election gains.
However, the altcoin has stayed around the lower range of its ascending channel for a while. Any extended bearish pressure and BTC dump could drag it to the $2 support zone.
Besides, there wasn’t strong bullish momentum per the directional index indicator, and the daily RSI fluctuated near the neutral level. This reinforced neutral or weak momentum for XRP in the short term.
However, this could change if BTC reverses recent losses and lifts the broader market sentiment.
