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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.