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Wealth manager Bitwise has registered a Delaware Trust for a fund that would track Ripple’s native cryptocurrency, XRP.
Bitwise, a Bitcoin (BTC) and Ethereum (ETH) exchange-traded fund issuer has filed for an XRP (XRP) ETF in the state of Delaware as the firm looks to expand its crypto offerings. The next step for a potential Bitwise XRP trust would likely involve a registration application with the U.S. Securities and Exchange Commission.
Considering previous crypto ETF bids, Bitwise may be heading toward a lengthy regulatory process involving a proposed rule change and engagement with SEC staff for feedback. Fellow crypto ETF issuer Grayscale also launched an XRP fund for accredited investors last month.
This year, many have debated how many more digital assets would assume the institutional ETF wrapper and debut on Wall Street. The SEC’s aversion to cryptocurrencies has generally been cited as a stumbling block for these products, especially outside BTC and ETH.
According to SEC chair Gary Gensler, most cryptocurrencies are securities, and issuers must register with the regulator. The SEC’s enforcement division has also sued several crypto businesses, including XRP’s creator Ripple, for allegedly breaking securities laws.
Ripple scored a partial victory against the SEC but was ordered to pay $125 million in fines, a court ruled. U.S. District Judge Analisa Torres declared that over 1,200 institutional sales of Ripple’s token violated federal securities laws. How this ruling might impact future ETFs based on Ripple’s cryptocurrency remains to be seen.
Ripple CEO Brad Garlinghouse previously said that more crypto ETFs were inevitable following the success of Bitcoin products. At Consensus 2024 in May, Garlinghouse predicted an XRP ETF in the coming months. The firm also has plans for a stablecoin earmarked for its company ledger and Ethereum’s blockchain.