Crypto asset manager Bitwise has taken the first step toward launching an XRP exchange-traded fund (ETF). A recent filing for the Bitwise XRP ETF appeared on Delaware’s Division of Corporations website, with Bitwise confirming the news.
Details of the Bitwise XRP ETF Filing
The filing, dated September 30, 2024, lists CSC Delaware Trust Company as the registered agent, headquartered in Wilmington, Delaware. While this filing marks a significant step, it does not necessarily mean that an official application to the Securities and Exchange Commission (SEC) is imminent. The filing in Delaware may represent an early stage of preparation, with a formal SEC application possibly months away.
This development comes on the heels of comments made by Ripple CEO Brad Garlinghouse, who previously suggested that an XRP ETF was “inevitable” following the launch of Bitcoin and Ether ETFs in the U.S. Approval of an XRP ETF would provide institutional investors regulated access to the cryptocurrency, potentially increasing liquidity and adoption of XRP.
XRP ETF Speculation and Previous Rumors
Rumors surrounding an XRP ETF have circulated for months. In November 2023, XRP’s price surged by 12% after a fraudulent filing for a “BlackRock iShares XRP Trust” in Delaware sparked speculation. Although BlackRock denied involvement, Delaware prosecutors are now investigating the deceptive filing.
Ongoing Legal Battle Between SEC and Ripple
The potential launch of an XRP ETF follows years of legal disputes between the SEC and Ripple Labs. In 2020, the SEC sued Ripple, claiming that XRP’s sale was an unregistered securities offering. However, a major legal milestone occurred in July 2023, when Judge Analisa Torres ruled that XRP is not a security when sold on public exchanges. This ruling represented a partial victory for Ripple, although institutional sales of XRP were still deemed securities offerings.
In the latest twist, both Ripple and the SEC requested a stay on the final judgment in September 2024, pending the SEC’s appeal. This stay would delay further court proceedings until the appeal is resolved, prolonging the case’s conclusion.
