365Crypto
Bitwise, a well-known crypto asset manager, has filed an application for an XRP exchange-traded fund (ETF) in Delaware. The filing was confirmed by a Bitwise representative.
The Bitwise XRP ETF was registered on September 30, 2024, with CSC Delaware Trust Company, based in Wilmington, as the agent.
Next Steps for the SEC
Even though this application has been filed in Delaware, it doesn’t guarantee an immediate submission to the SEC. This could just be an initial step, and it might take time before Bitwise files for official approval from the SEC.
Ripple CEO Brad Garlinghouse previously mentioned that the launch of an XRP ETF is “inevitable,” especially after the release of Bitcoin and Ethereum ETFs in the U.S.
What an XRP ETF Could Mean
An XRP ETF would open the doors for institutional investors to buy XRP in a regulated manner, which could increase liquidity and broader use of the token.
In November 2023, a fake filing for a “BlackRock iShares XRP Trust” in Delaware caused a 12% spike in XRP’s price, fueling rumors of an ETF. BlackRock later denied the application, and Delaware authorities have launched an investigation into the false filing.
Ripple’s Legal Battle with the SEC
This move happens alongside Ripple’s legal conflict with the SEC. The SEC filed a lawsuit against Ripple in 2020, claiming the sale of XRP was an unregistered securities transaction.
In a key decision in July 2023, a U.S. judge ruled that XRP is not a security when traded publicly but could be considered a security in institutional sales.
Most recently, in September 2024, Ripple and the SEC agreed to pause the case’s final ruling until the SEC’s appeal is heard.
