- Bitwise files for XRP ETF under Delaware statutory trust.
- Filing confirmed by Bitwise spokesperson.
- SEC’s cautious stance on crypto ETFs may impact approval.
- XRP price remains stable despite the news.
- Ripple CEO predicts an “inevitable” XRP ETF approval.
Bitwise, a prominent asset management firm, has made waves with its recent filing for a new crypto ETF.
The filing, dated September 30, was for an “XRP ETF” under a statutory trust named Bitwise XRP ETF. This move was confirmed by a Bitwise spokesperson to CoinDesk, marking the first step in potentially launching an exchange-traded fund focused on XRP.
A Critical Stage in ETF Launch
The filing listed CSC Delaware Trust Company as the registered agent. Typically, this initial step precedes a formal application to the U.S. Securities and Exchange Commission (SEC).
A Bitwise spokesperson confirmed the legitimacy of the document, emphasizing that this initial filing does not guarantee an imminent submission to the SEC.
“We can now confirm that this is both legitimate and from Bitwise,”
Bitwise spokesperson
Regulatory Backdrop and Challenges
The regulatory environment for crypto ETFs has evolved, especially following approvals for Bitcoin and Ethereum ETFs. Despite these advancements, the SEC’s cautious stance on crypto ETFs presents potential hurdles for Bitwise.
The scrutiny surrounding XRP has been particularly intense due to Ripple’s legal battles with the SEC.
Recently, a U.S. District Court judge ruled in favor of Ripple, stating that XRP sales on public exchanges did not violate securities laws. This ruling could create a more favorable environment for an XRP ETF.
Market Reactions and Past Incidents
Interestingly, the announcement had little effect on XRP’s market price, which was trading at $0.60, down just over 3% amid a broader market downturn.
This contrasts sharply with a previous, fraudulent filing named “iShares XRP Trust” that caused XRP prices to spike by 12%.
Ripple CEO’s Optimism
Earlier this year, Ripple CEO Brad Garlinghouse expressed optimism about the future of an XRP ETF.
His comments came after Judge Analisa Torres ruled that XRP sold on exchanges did not qualify as an unregistered securities offering. Ripple Labs, however, was fined $125 million for securities violations related to institutional sales of XRP.
The SEC has until October 7 to decide whether to challenge Judge Torres’ ruling.
Concluding Thoughts
Bitwise’s filing for an XRP ETF signifies a bold step in the evolving landscape of crypto investments.
While regulatory challenges remain, particularly from the SEC, the market’s reaction and Ripple’s legal position could play pivotal roles in shaping the future of this offering.
Whether or not Bitwise’s vision for an XRP ETF comes to fruition, this filing marks another chapter in the complex narrative of cryptocurrency and regulatory oversight.
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