- Crypto asset manager Bitwise Invest has filed for an XRP ETF in Delaware.
- The filing comes amid growing interest in crypto-based ETFs.
- The move could pave the way for increased institutional investment in XRP.
Bitwise Invest, a leading asset manager, has applied to an XRP exchange-traded fund (ETF). The filing was made on Sept. 30, 2024, via CSC Delaware Trust Company, which is entrusted to represent their interests in the application process. The strategic move is part of the firm’s broader strategy to expose investors to various cryptocurrencies through traditional investment vehicles.
While the filing in Delaware is a crucial step, it does not guarantee that a formal registration application with the Securities and Exchange Commission (SEC) will be submitted immediately. This step could be part of early-stage preparation as the company continues to refine its plans and gather necessary information to make a formal filing with the SEC.
Nevertheless, it has reignited hopes for a spot XRP ETF amidst regulatory uncertainty. One of the primary reasons behind this skepticism is the legal tussle between the United States Securities and Exchange Commission (SEC) and Ripple that is casting a shadow over the prospects of an ETF. CoinShares’ head of product, Townsend Lansing, recently expressed doubts over such ETF approval unless the US regulator acknowledges that XRP is not a security.
Despite a significant breakthrough in July 2023 when the judge ruled that Ripple’s native token is not a security when sold on retail exchanges, legal ambiguity persisted. The same ruling also determined that it becomes a security when sold to institutional buyers.
XRP’s Legal Uncertainty
However, ETF analyst Nate Geraci has expressed his belief that an XRP ETF is likely to be approved at some point, although he acknowledges that political factors may influence the timing. Geraci suggests that Bitwise’s early filing indicates their long-term commitment to offering XRP-based investment products.
In the longer term, Bitwise’s roadmap may include fully tokenizing their ETF, allowing for even greater efficiency and accessibility. This move could further solidify the token’s position as a leading cryptocurrency and attract more institutional investors to the space.
Overall, Bitwise’s filing for an XRP ETF represents a significant milestone in the development of the crypto market. It demonstrates the growing interest in crypto-based investment products and could pave the way for increased institutional adoption.
