Key Points
- Bitwise files for the first-ever U.S. XRP ETF.
- The filing was made in Delaware amidst Ripple’s SEC legal fight.
- XRP’s legal status is still uncertain ahead of the SEC appeal deadline.
- XRP price drops 2.67%, trading at $0.603.
In a significant development, Bitwise Asset Management has filed for the first-ever U.S. XRP ETF, marking a new frontier for cryptocurrency investors.
The filing, made with Delaware’s Division of Corporations, outlines plans for the Bitwise XRP ETF, with CSC Delaware Trust Company as the registered agent.
This is the initial step in a lengthy approval process, but it already signals the growing interest in XRP as a mainstream investment vehicle.
The XRP ETF filing comes on the heels of similar moves by major players like BlackRock, which successfully launched both Bitcoin and Ethereum ETFs.
A Bitwise spokesperson confirmed the legitimacy of the filing, though no further details have been shared at this time.
Given the success of Bitcoin and Ethereum ETFs in recent months, the filing has sparked optimism that an XRP ETF might also gain approval, potentially opening the floodgates for institutional investors.
The XRP ETF could also help solidify XRP’s position in the crypto market by offering investors exposure to the digital asset in a regulated framework.
ETFs are attractive because they provide a simplified method for gaining access to cryptocurrencies without the need for direct ownership or managing wallets.
#Bitwise has filed for an $XRP ETF in the state of Delaware.** This filing was confirmed by a Bitwise spokesperson to Cointelegraph and was officially made on September 30, 2024. The registered agent for this #ETF is CSC Delaware Trust Company. This move marks a significant step… pic.twitter.com/IiVhPpz3ZV
— Raajeev Anand (@rajeevanandspur) October 2, 2024
Ripple’s Battle with the SEC: Will It Affect the XRP ETF?
Bitwise’s move to file for an XRP ETF comes as Ripple Labs, the company behind XRP, is locked in a high-stakes legal dispute with the U.S. Securities and Exchange Commission (SEC).
The SEC has long argued that XRP’s sale constitutes an unregistered securities offering, a position that Ripple has been fighting since 2020.
However, Ripple scored a major win last year when a U.S. District Judge ruled that the sale of XRP on public exchanges did not violate federal securities laws.
This ruling boosted confidence in XRP and even led to a temporary spike in its price. The SEC has until October 7 to appeal the ruling, which leaves a cloud of uncertainty hanging over both Ripple and the potential XRP ETF.
If the SEC opts to appeal and eventually wins the case, it could complicate the approval of an XRP ETF. Conversely, if Ripple prevails, it could open the door for rapid regulatory approval and a surge in demand for XRP-focused investment products like ETFs.
Grayscale, another major player in the crypto investment space, has already launched an XRP “closed-end” fund for accredited investors, which offers a similar but less liquid exposure compared to an ETF.
However, Bitwise’s XRP ETF would allow everyday investors to participate, which could further legitimize XRP’s standing in the financial world.
XRP’s Price Action and Market Reactions
Despite the exciting news of an XRP ETF filing, XRP has faced a rough patch in the market. At the time of writing, XRP is trading at $0.603, down 2.67% in the past 24 hours.
The market may be waiting for more clarity on both the SEC case and the potential approval of the ETF before making a more decisive move.
Nonetheless, the broader crypto market has shown resilience in the face of regulatory challenges, and XRP remains a top-10 cryptocurrency by market cap.
The filing of an XRP ETF suggests that institutional interest in the asset is still strong, despite the ongoing legal challenges.
The coming weeks will be critical for both Ripple and the XRP ETF. With the SEC’s appeal deadline approaching and more companies exploring XRP-focused products, the crypto world is keeping a close eye on the developments.
