Bitwise Files for XRP ETF
A filing for a Bitwise XRP exchange-traded fund (ETF) recently appeared on the Delaware Division of Corporations website.
BREAKING🇺🇸: BITWISE FILES FOR AN XRP ETF pic.twitter.com/fNfe00da8w
— Documenting Ripple 📚📜 (@RippleArchive) October 1, 2024
Bitwise confirmed the filing but declined to comment on the ETF at this early stage.
The spokesperson noted:
“We can now confirm that this is both legitimate and from Bitwise.”
Bitwise spokesperson is confirming that the XRP ETF filing is REAL. ✅ https://t.co/ZBNZgZe1AE pic.twitter.com/5uhuiQt9eq
— Chad Steingraber (@ChadSteingraber) October 1, 2024
The application, filed on 30 September 2024, lists CSC Delaware Trust Company as the registered agent.
However, this filing does not guarantee an imminent application with the Securities and Exchange Commission (SEC), as it may represent initial preparations, with a formal SEC submission possibly months away.
The ETF, centered on XRP—the seventh-largest cryptocurrency by market cap—follows the SEC's recent approval of Bitcoin and Ethereum ETFs from various firms.
Ripple CEO Brad Garlinghouse previously suggested that an XRP ETF was "inevitable" after the launch of similar products for Bitcoin and Ether.
If approved, an XRP ETF would offer institutional investors regulated exposure to the token, potentially increasing liquidity and adoption.
Why ETFs?
ETFs are widely favoured investment tools that allow investors to gain exposure to underlying assets while trading on stock exchanges.
Crypto ETFs approved in the US this year have seen remarkable success, attracting billions in inflows within a short span of time.
Rumours of XRP ETF Launch
In recent months, speculation surrounding the launch of an XRP ETF has gained momentum.
In November 2023, XRP saw a 12% price spike following a fraudulent filing for a "BlackRock iShares XRP Trust" in Delaware, which fueled rumours of an imminent ETF.
BlackRock quickly denied the filing, and Delaware authorities have since launched an investigation into the misleading submission.
As we confirmed yesterday, BlackRock has not filed an iShares XRP Trust. We have escalated this issue with the Delaware Division of Corporations. https://t.co/IDlGhPjU7V
— BlackRock_News (@BlackRock_News) November 15, 2023
SEC Might Not Approve a XRP ETF
There is no guarantee that the SEC will approve an XRP ETF, given its longstanding legal battle with Ripple Labs.
The Delaware filing comes after years of conflict, starting with the SEC's $1.3 billion lawsuit against Ripple in 2020, alleging the company sold unregistered securities through XRP.
In July 2023, Ripple secured a partial victory when Judge Analisa Torres ruled that XRP is not a security when sold on public exchanges.
However, the court also found that $728 million in institutional sales constituted unregistered securities.
This ruling, seen as a win for the crypto industry, sent ripples across the market.
In September 2024, both parties requested a stay on the final judgment, pending the SEC's appeal, allowing the court to pause proceedings until the appeal is resolved.
XRP Price Not Much Fluctuation
Despite the recent announcement, XRP's price remained relatively stable on Tuesday, holding at a lower level, even as the broader cryptocurrency market experienced significant declines over the past 24 hours.
It is currently at $0.5963, a 3% dip in the last 24 hours and a 0.8% increase in the last seven days, according to CoinMarketCap.
I think this liquidation is finishing up and $XRP is bottoming here with a beautiful crashing structure 👀🚀 https://t.co/SvlWnaSELb pic.twitter.com/GYlB4XMlIa
— RJ (@c2bsolution) October 1, 2024
