The SEC has until October 7, 2024 to put forward an appeal.
Bitwise’s hopes of getting its XRP ETF bid approved currently hang in the balance, and its success may be dependent on the SEC’s reaction to a recent Ripple ruling. The ruling ultimately determined that XRP sales on secondary markets to retail investors were not securities. However, according to Alex Thorn, Head of Research at Galaxy Digital, if the regulator decides to appeal the ruling, Bitwise’s bid may likely not succeed. He said in part:
“The likelihood of this ETF filing succeeding drops to near zero if the SEC does appeal.”
Meanwhile, the SEC has until October 7, 2024, to put forward an appeal. However, the agency has still not decided whether or not it will push forward with the appeal.
Interestingly, Bitwise is not waiting for the SEC to make a decision before forging ahead with its XRP ETF plans. It submitted an application to establish a trust entity on September 30. The move is a significant step towards bagging approval for its XRP ETF.
SEC May Yet Appeal
Eleanor Terrett has earlier hinted that the SEC would most likely challenge the court ruling. The FOX Business journalist and former SEC lawyer shared this view, adding that everyone at the agency believes that the court was wrong and that the law should not be allowed.
Terrett’s views were recently confirmed by the regulator. The SEC officially stated in another filing, in a case against Terraform Labs, that the court “wrongly decided.” According to the regulator, the court may have created an unjust division between institutional and retail investors through its decision.
As it stands, Ripple would be hoping that the SEC holds its peace, which would mean that its long legal battle with the regulator has come to an end. That is, after the firm pays up all settlements and penalties.
Should the agency appeal, however, then this case may drag and extend deep into 2025.
More Doom for Bitwise’s XRP ETF?
Meanwhile, even if the fate of the XRP ETF potentially lies in the hands of the SEC, Bloomberg ETF analyst Eric Balchunas has also shared another danger. In his opinion, he said that XRP ETFs have almost no chance if Vice President Kamala Harris should win the coming presidential election.
However, even this view may be too farfetched considering that it is not exactly clear how Harris’ administration would treat crypto and handle its regulations.
For all intents and purposes, Harris has publicly expressed support for emerging technologies, including crypto.
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