- Ripple’s XRP token remains largely unaffected by Bitwise’s XRP ETF filing.
- Kaiko says the SEC is unlikely to approve Bitwise’s XRP ETF application.
- The XRP futures market faced a downturn in open interest for perpetual contracts last week.
Despite Bitwise’s recent filing for an XRP ETF, XRP’s price has dropped nearly 20% since the end of last month. Market analysts at Kaiko suggest the chances of SEC approval for the ETF are slim, which may be contributing to the negative price action.
This decline mirrors the overall bearish trend in the cryptocurrency market. However, the lack of any positive price action on XRP following the ETF filing has surprised some investors, who expected the news to be a bullish catalyst for XRP.
XRP Dips Despite Bitwise’s ETF Filing
On October 2, 2024, Bitwise started the process of launching its XRP ETF, filing for the “ Bitwise XRP ETF ” entity with Delaware’s Department of State’s Division of Corporations. When the asset manager filed an initial registration statement with the SEC for an exchange-traded product for XRP tokens, the community expected a market surge. However, XRP’s value dropped, falling by nearly 20% from $0.66 at the end of last month.
Read also: 80% Down, But Not Out: Is XRP Poised for a Monumental Surge?
At the time of writing, XRP is trading at $0.5306 , down 2.23% in a day. Despite a slight increase of 0.16% over the month, XRP has fallen 14.50% over the last 7 days. While XRP is struggling, investors are buying the token at a discounted price.
This is clear from the big jump in the 24-hour trading volume, currently at $1,125,695,605, up 53%. The increasing demand for XRP was also noted by Bitwise CEO Hunter Horsley, who stated that XRP is an “enduring crypto asset that many investors want exposure to.”
Kaiko Says Chances for XRP ETF Approval Are Slim
Crypto analytics platform Kaiko published a research article saying that the XRP ETF probably won’t be approved. The XRP token’s lack of response to Bitwise’s XRP ETF application might be due to the low possibility of the ETF approval.
Bitwise was not alone in trying to launch an XRP ETF. Grayscale, a rival asset manager, brought back its XRP trust, suggesting a potential conversion of the product into an ETF. However, right now, the chances of Grayscale’s XRP ETF launch are very slim.
Read also: XRP ETF Speculation Fuels Spike in Options Market Activity
The XRP futures market, limited to crypto exchanges like Binance and Bybit, saw a notable downturn in open interest for perpetual contracts last week. This decline happened at the same time as XRP’s significant drop of 18% between Monday and Sunday. These market conditions, along with the ongoing Ripple lawsuit, signal that the SEC is unlikely to approve the XRP ETF launch.
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