Bitwise's XRP ETF and ETP Filings Spark Market Speculation, Whale Activity Hints at Bullish Sentiment

Bitwise's recent filing for an XRP ETF and subsequent announcement for an ETP gained significant traction in the cryptocurrency market.

Bitwise, a leading asset management firm, has recently filed for an XRP exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC). This move comes as part of a broader strategy to offer investors diverse cryptocurrency products.

The filing, made on Sept. 30 through its agent CSC Delaware Trust Company, marks a significant development in the efforts to launch a spot ETF in the U.S. However, due to the SEC’s stance on the matter, Bitwise's application also includes an ETP (Exchange-Traded Product) filing.

This move is designed to increase the chances of obtaining regulatory approval later this year or in early 2025. As a result, the market response to this news was mixed, with initial excitement and a huge social volume spike.

According to Santiment's social data, XRP transaction volume spiked to 8-month highs of $2.39 billion following the filings.

In contrast, the token's 30-day MVRV (average returns of XRP traders active in the last 30 days) stood at -9.2%, marking the lowest point in two months.

Historically, such negative sentiment and low returns can present an “opportunity zone,” where the market is under pressure but risk is relatively limited. Here, savvy investors look to accumulate, anticipating a rebound once the negative sentiment wanes.

This is evidenced by 145 whale transactions that exceeded $1 million in value on October 1, a notable 6-month high. Such transactions by high-profile investors frequently precede market moves, providing valuable insights for small-scale investors.

The filings come amid regulatory scrutiny over XRP's status as a security. In 2023, a court ruled that XRP is not a security, but the SEC has filed a notice of appeal.

The legal battle, which began in 2020, could impact the regulatory landscape for products like this ETP, depending on the outcome of any appeals or future rulings.

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