The crypto asset manager Bitwise has filed an application for an XRP exchange-traded fund (ETF) in the state of Delaware. The application appeared on Delaware’s Division of Corporations website, and Bitwise confirmed the filing.
Details of the Filing
According to the filing, the Bitwise XRP ETF was created on September 30, 2024. The listed registered agent is CSC Delaware Trust Company, based in Wilmington, Delaware. However, this filing does not mean that Bitwise is ready to apply with the U.S. Securities and Exchange Commission (SEC) yet. This could be an early step in the process, and a formal application with the SEC could take months to happen.
Ripple’s CEO and the XRP ETF
This move follows comments from Ripple’s CEO, Brad Garlinghouse, who said earlier this year that an XRP ETF was “inevitable,” especially after Bitcoin and Ether ETFs were introduced in the U.S. An XRP ETF would give institutional investors a chance to invest in the cryptocurrency in a regulated way, which could increase its use and liquidity.
In November 2023, rumors of an XRP ETF caused the price of XRP to rise by 12%. This was sparked by a false filing for a “BlackRock iShares XRP Trust” in Delaware, which was later denied by BlackRock. Delaware prosecutors are now investigating the fake filing.
SEC vs. Ripple
This filing also comes as Ripple continues its legal battles with the SEC. The SEC sued Ripple in 2020, claiming that its sale of XRP was an unregistered securities offering. In July 2023, a judge ruled that XRP is not a security when sold on public exchanges, which was a partial victory for Ripple. However, the ruling also said that XRP sales to institutions could still be considered securities.
Most recently, in September 2024, both Ripple and the SEC requested that the final ruling in the case be paused while the SEC appeals the decision.
Summary Review: Bitwise’s filing for an XRP ETF in Delaware marks an important step towards offering institutional investors a regulated way to invest in XRP. While this is an early-stage filing, the potential launch of an XRP ETF could significantly boost the cryptocurrency’s adoption and liquidity. However, the ongoing legal battle between Ripple and the SEC continues to add complexity to XRP’s regulatory landscape.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
