Leading crypto asset manager Bitwise officially applies with the state of Delaware to launch an exchange-traded fund (ETF) for XRP.
FOX Business and pro-crypto journalist Eleanor Terrett first revealed the development yesterday, indicating that Bitwise is seeking to launch an XRP ETF.
The filing, which is currently on the state of Delaware’s Division of Corporations website under the entity name Bitwise XRP ETF, was formally incorporated on September 30. Notably, the filing listed CSC Delaware Trust Company as the registered agent.
Bitwise Exec Confirms XRP ETF Filing
As expected, the development triggered mixed reactions among XRP enthusiasts, with some users speculating that the filing could be illegitimate.
This skepticism stems from the fact that an individual had previously made a fake Delaware Trust filing for an iShares XRP Trust, suggesting that BlackRock was seeking to launch an ETF for XRP. BlackRock denied the filing at the time, dashing investors’ hopes for an imminent XRP ETF.
Following the growing skepticism surrounding the Bitwise filing, Terrett said she received confirmation from the company’s Chief Investment Officer, Matt Hougan, that the application is authentic. The pro-crypto journalist promised to share more details about the application today.
🚨NEW: @BitwiseInvest’s Chief Investment Officer @Matt_Hougan has confirmed the filing I shared is authentic.
More deets tomorrow! https://t.co/6eqgHI5tDP
— Eleanor Terrett (@EleanorTerrett) October 1, 2024
Furthermore, Bloomberg ETF analyst Eric Balchunas, who recounted the BlackRock XRP ETF saga, also said the Bitwise application is legit, adding that “we confirmed with them.”
Is an XRP ETF Imminent?
It bears mentioning that launching an XRP Trust requires the SEC’s approval. The market observed this earlier this year when the SEC approved multiple spot-based ETFs for Bitcoin (BTC) and Ethereum (ETH).
While the Delaware filing is commendable, it does not indicate that Bitwise is close to officially registering an XRP ETF with the SEC. The asset manager could choose to wait several months before submitting a formal application with the SEC to launch an XRP ETF.
Concerns Surrounding XRP ETF Potential Launch
In the meantime, there are concerns that the SEC might not approve an XRP ETF due to its multi-year legal tussle with Ripple.
Recall that the SEC filed a $1.3 billion lawsuit against Ripple in December 2020. The regulator alleged that Ripple violated federal securities law by selling XRP as an unregistered security to U.S. investors.
However, U.S. District Judge Analisa Torres gave Ripple a partial victory last year when she ruled that the company’s programmatic sales and other distributions of XRP did not constitute investment contracts.
The judge went a step further to declare that XRP in itself is not a security. In a final verdict issued in August, the court ordered Ripple to pay $125 million to the SEC following its violation of securities laws through its institutional sales of XRP.
There are speculations that the SEC could appeal Judge Torres’ ruling on Ripple’s programmatic sales before the October 7 deadline elapses. If true, this could further delay the lawsuit, stretching its resolution beyond this year.
Ripple CEO Confident About XRP ETF Launch
Nonetheless, Ripple CEO Brad Garlinghouse believes that an XRP ETF is inevitable. Garlinghouse, who was initially charged in the SEC lawsuit, asserted that it is only a matter of time before an XRP ETF goes live.
Bitwise has now made a major step toward launching an XRP ETF several months after Garlinghouse issued the comment. Recall that Grayscale also recently re-introduced its XRP Trust, the first of four steps toward filing for an XRP ETF.
With a 24-hour trading volume of $2.79 billion, XRP currently trades at $0.6006. The coin has witnessed a downturn of 3.29% in the past day, no thanks to the ongoing bloodbath across the broader crypto market.
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