In a significant development for the cryptocurrency market, Bitwise Asset Management, a prominent cryptocurrency index fund manager, has filed for an XRP exchange-traded fund (ETF). This marks the first time an XRP ETF has been proposed in the US market, potentially offering investors a novel way to gain exposure to the digital asset.
Bitwise submitted the ETF filing on Monday to Delaware’s Department of State’s Division of Corporations. The filing, under the name Bitwise XRP ETF, lists CSC Delaware Trust Company as the registered agent. This process is typically the initial step towards an ETF’s launch and listing, mirroring the approach taken by firms like BlackRock with their iShares Bitcoin Trust ETF (IBIT) and iShares Ethereum Trust ETF (ETHA).
This move comes as a noteworthy development, particularly given Ripple Labs, the blockchain company that utilizes XRP for its operations, is currently engaged in a legal battle with the SEC regarding the token’s sale. However, Ripple achieved a significant victory in this legal dispute last year when a US District Judge ruled that XRP sales on public exchanges did not constitute unregistered securities offerings. The SEC has until October 7th to appeal this ruling.
Earlier this year, the SEC greenlit several spot Bitcoin ETFs from companies including BlackRock, Grayscale, and Fidelity, along with eight Ethereum ETFs. Grayscale has also launched an XRP “closed-end” fund specifically for accredited investors.
This development signifies a potential turning point for XRP in the US market. It’s important to note that the SEC’s approval is still required for this ETF to become a reality. Should the SEC approve this filing, it would pave the way for more accessible investment opportunities in XRP, potentially boosting its adoption and liquidity in the US.
