After launching Bitcoin and Ethereum spot ETFs, crypto asset management company Bitwise is not afraid of the lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC), and is now preparing to launch a "Ripple (XRP) spot ETF."

Bitwise on Tuesday registered a trust entity called the “Bitwise XRP ETF” with the Delaware Department of Corporate Affairs, with CSC Delaware Trust Company listed as the registered agent.

This is usually the first step in applying for ETF listing. Companies such as BlackRock and Fidelity had previously submitted Bitcoin and Ethereum ETF applications to the U.S. Securities and Exchange Commission (SEC) for these funds. A trust entity is registered.

Bitwise chief investment officer Matthew Hougan later revealed to foreign media "The Block":

We can confirm that this is an application for registration filed by Bitwise, one of our registered trust entities in Delaware. We'll share more details tomorrow.

The U.S. SEC has not yet approved any XRP spot ETF, and the legal battle between the regulator and Ripple has not yet concluded, so Bitwise’s upcoming ETF application is likely to face obstacles.

The U.S. SEC launched a lawsuit against Ripple in December 2020, accusing the company of violating the Securities Act by selling and issuing "unregistered digital asset securities (XRP)".

Earlier there were rumors in the market that the two parties were negotiating a settlement. In response to this, Ripple CEO Brad Garlinghouse did not respond directly when interviewed in July this year, saying only that a "solution" may be released "in the short term."

The US SEC requested a heavy fine of nearly US$2 billion for Ripple, but the court reduced it to US$125 million.

〈The U.S. SEC lawsuit is not over yet! Bitwise is about to launch the "Ripple spot ETF". This article was first published on "Block Guest".