Bitwise’s dual application for XRP ETF and ETP has generated a lot of attention in the cryptocurrency market. Despite negative market sentiment, altcoins have seen an increase in whale activity and a surge in trading volumes. The ongoing legal battle between the SEC and Ripple could impact the future of XRP-based products and the broader cryptocurrency market.
Bitwise’s recent XRP ETF filing and subsequent ETP announcement garnered a lot of attention in the cryptocurrency market. Investors are eagerly awaiting the outcome of these ground-breaking moves, as regulatory flexibility may increase and token prices may soar.
On September 30th, the prominent asset management company applied for the XRP exchange-traded fund (ETF) through its agency, CSC Delaware Trust Company. The filing may be part of early preparations, but hopes for spot ETFs are rising amid regulatory uncertainty. In particular, next-day exchange-traded product (ETP) filings are seen as a strategic move to overcome challenges facing ETFs, raising the possibility of SEC approval later this year or early 2025.
This may be why the market reaction to this news was mixed, but was characterized by early excitement and a significant spike in social volume. Santiment’s social data reveals a surge in XRP trading volume, reaching an eight-month high of $2.39 billion shortly after the filing. In contrast, the token’s 30-day MVRV (average return of active XRP traders over the past 30 days) was -9.2%, its lowest point in two months.
XRP moment has arrived: Dual Filing Sparks Frenzy 3
Historically, such negative sentiment and low returns can indicate an “opportunity zone” where the market is under pressure but risks are relatively limited. Here, smart investors are looking to accumulate in hopes of a rebound once the negative sentiment fades.
Whale activity suggests bullish sentiment towards XRP
This is evidenced by 145 whale trades exceeding $1 million on October 1st, a notable six-month high. These trades by well-known investors are often made in advance of market movements, providing valuable insight for smaller investors.
In terms of price, the initial frenzy caused a spike in the price of XRP, but given what happened after the Bitcoin and Ethereum ETFs, this rise may be temporary. Potential factors affecting price trajectory include post-announcement price corrections, SEC approval delays, and mismatches between investor expectations and actual adoption rates.
The filing also comes at a time when the SEC issued a notice of appeal against a 2023 court ruling regarding the legal status of XRP. The legal battle between Ripple and the SEC that began in 2020 is still ongoing, and depending on the outcome of the appeal and future rulings, it could have a major impact on the regulatory status of products like this ETP.
