Cryptocurrency NewsBitwise Registers XRP ETF in Delaware Amid Expanding Crypto Offerings

Bitwise Registers XRP ETF in Delaware Amid Expanding Crypto Offerings

Wealth management firm Bitwise has taken a significant step in expanding its cryptocurrency product line, filing for a Delaware Trust focused on Ripple’s XRP. The fund would track Ripple’s native cryptocurrency, XRP, adding to Bitwise’s existing lineup of Bitcoin and Ethereum exchange-traded funds (ETFs).

Bitwise, a prominent issuer of Bitcoin and Ethereum ETFs, filed the paperwork in Delaware as it looks to offer a more diverse range of crypto assets. The next move for Bitwise will likely involve submitting a formal registration with the U.S. Securities and Exchange Commission (SEC), a process that could lead to a lengthy regulatory review. The SEC has historically been resistant to approving cryptocurrency ETFs, particularly those focused on assets beyond Bitcoin and Ethereum.

Recent activity in the crypto ETF space suggests growing institutional interest. Grayscale, another major player in the crypto ETF market, launched an XRP fund for accredited investors last month. However, navigating SEC approval remains a challenge. SEC Chairman Gary Gensler has stated that many cryptocurrencies, including XRP, could be classified as securities, requiring issuers to comply with stringent regulatory requirements.

Ripple, the creator of XRP, has faced legal battles with the SEC over allegations of securities law violations. Although Ripple secured a partial victory in court, it was ordered to pay $125 million in fines. The ruling by U.S. District Judge Analisa Torres found that over 1,200 institutional sales of XRP violated federal securities laws. The potential impact of this ruling on future XRP-based ETFs is still uncertain.

Ripple CEO Brad Garlinghouse, speaking at Consensus 2024, expressed optimism about the future of crypto ETFs, including XRP. He predicted that an XRP ETF would likely emerge soon, citing the success of Bitcoin ETFs as a precursor. Ripple also has ambitions beyond ETFs, with plans to launch a stablecoin on its ledger and Ethereum’s blockchain.

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