Bitwise Files for XRP ETF as U.S. Election Outcome May Shift Crypto Regulations

• Bitwise files for a spot XRP ETF, positioning for potential regulatory shifts tied to the U.S. presidential election outcome.
• Analysts suggest Bitwise’s XRP ETF filing is a strategic bet on election results, with Trump’s win possibly easing crypto regulations.
• SEC scrutiny on crypto remains high, but optimism grows for XRP ETF approval as Ripple’s ongoing lawsuit progresses.

Bitwise Asset Management has recently taken steps to establish its presence in the growing XRP investment market, filing for a spot XRP exchange-traded fund (ETF) on September 30.

This move by Bitwise coincides with the U.S. election season, prompting speculation that the asset manager may be positioning itself for a potentially favorable regulatory environment in the near future.

The filing was submitted to the Delaware Department of State’s Division of Corporations, with CSC Delaware Trust Company listed as the registered agent. Analysts suggest that this strategic filing could be a bet on the outcome of the upcoming presidential election, which may have an impact on the crypto industry’s regulatory sector.

Election Outcome Likely to Shape XRP ETF Approval

Nate Geraci, an ETF investment advisor, commented on the timing of Bitwise’s filing. He referred to it as a “call option on November’s election,” emphasizing the company’s strategic positioning for regulatory clarity. 

Notably, Geraci added that while short-term regulatory challenges remain, the eventual approval of an XRP ETF is highly probable. He also pointed out that Bitwise’s credibility as a crypto-native firm makes this filing more than just a speculative attempt, further suggesting that the company’s long-term vision includes offering XRP in an ETF structure.

The potential for approval largely depends on the election results. A win by former President Donald Trump, who has shown support for the crypto industry, could lead to a more favorable regulatory environment for XRP. 

Conversely, should Vice President Kamala Harris secure the presidency, analysts believe the regulatory outlook may become less favorable for the approval of such investment products.

Ripple Lawsuit and SEC’s Role in Future Approval

The Securities and Exchange Commission (SEC) has a history of strict oversight of the crypto industry. Earlier in 2024, the regulator approved several spot Bitcoin ETFs following market capitalization growth. This was followed by the approval of Ether ETFs in July. Now, with filings for Solana and XRP ETFs, optimism is growing that the SEC could reconsider its position.