Asset Manager Bitwise Advances Plans for XRP ETF
Bitwise has confirmed plans to launch an XRP exchange-traded fund (ETF), confirming the authenticity of an application with the state of Delaware.
This comes after earlier successful Bitcoin and Ethereum ETF launches this year, which have seen billions invested so far. The XRP fund would be focused on the seventh-largest cryptocurrency by market capitalization, originally created by the founders of Ripple.
Recently, Standard Chartered, the British multinational bank, said that both Solana and XRP were likely candidates for the next wave of crypto ETF approvals.
This projection comes after the SEC gave the green light to eight spot Ethereum ETFs, a move that allowed traditional investors new ways to gain exposure to the second-largest digital asset.
While Bitwise has confirmed the existence of the filing, the company remains tight-lipped on funds, which remain at the filing stage. A long history that XRP has with regulatory authorities might make the route to eventual approval fraught with complications.
The SEC had earlier fought a long-drawn-out battle in the courts with Ripple, eventually charging a $1.3 billion lawsuit in December 2020 over selling unregistered securities.
That changed dramatically last year when Ripple secured a partial court victory. A judge ultimately ruled that retail sales of XRP through exchanges did not constitute security trades, though institutional sales worth $728 million constituted unregistered securities. The nuanced decision was for the most part seen as a win for the greater cryptocurrency industry.
Following Bitwise’s news, XRP's value surged slightly to $0.6334. However, the wider market sell-off caused by tensions in the Middle East saw XRP fall to $0.5975, down 2.28% over the past 24 hours.
