zycrypto.com
Bitwise Asset Management, a prominent crypto index fund manager, has officially filed for a spot XRP exchange-traded fund (ETF) with the Delaware Department of State.
According to reliable sources, Bitwise Chief Investment Officer Matthew Hougan confirmed the filing, stating, “We can confirm this is a registration by us. It is a registration of a trust entity in Delaware.” The filing, which lists CSC Delaware Trust Company as the registered agent, represents an effort to broaden investor access to XRP.
That said, Bitwise’s move is particularly significant in light of the ongoing regulatory uncertainty surrounding XRP. The SEC has been locked in a legal battle with Ripple since December 2020, accusing the company of raising $1.3 billion through the sale of XRP as an unregistered security. This contentious backdrop has led some experts to believe that the path forward for an XRP ETF is riddled with challenges.
Alex Thorn, head of research at Galaxy Digital, cautioned that an SEC appeal regarding the ongoing Ripple case could severely hinder the ETF’s chances of approval.
“The SEC has until next week (October 7) to appeal Judge Torres’ July 2023 ruling, which determined that secondary sales of XRP through exchanges do not qualify as securities. If they do appeal, the likelihood of this ETF filing succeeding drops to near zero. I’ll be very surprised if they don’t appeal,” he tweeted.
Adding to the skepticism, Eric Balchunas, a senior ETF analyst at Bloomberg, likened the XRP filing to a speculative bet.
“You’ve heard of the Fed Put; this is like the Trump Call. Filings for XRP or Solana, or any other altcoins, are essentially cheap call options on a Trump victory,” he wrote. However, he cautioned that, “If Harris wins, there’s no way these get approved, and the ‘call’ expires worthless.”
That said, despite these hurdles, some industry analysts believe the introduction of an XRP ETF is inevitable. Ripple CEO Brad Garlinghouse has previously expressed confidence in the viability of such products, suggesting that the evolving regulatory landscape could soon favor them.
Recently, Grayscale Investments announced plans to launch an XRP “closed-end” fund for accredited investors, indicating growing institutional interest in XRP-based products. In a broader context, the SEC has approved multiple spot Bitcoin and Ethereum ETFs this year, signaling a potential shift in regulatory attitudes towards digital assets. If Bitwise’s filing is accepted, it could pave the way for similar products, potentially revolutionizing how investors engage with XRP.
Meanwhile, the latest filing has sparked excitement within the crypto community, although XRP’s price has not mirrored this enthusiasm. At press time, the cryptocurrency was trading at $0.60, down 3.65% over the past 24 hours.