Bitwise Files for a Spot Ripple XRP ETF
Crypto index fund manager Bitwise has officially filed for a spot XRP exchange-traded fund (ETF). “We can confirm this is a registration by us,” Bitwise Chief Investment Officer Matthew Hougan told The Block on Tuesday. “It is a registration of a trust entity in Delaware. We can share more details and comments tomorrow.”
According to a filing submitted to Delaware’s Department of State’s Division of Corporations on Monday, CSC Delaware Trust Company is listed as the registered agent. The filing was made even though a Ripple XRP ETF hasn’t been approved yet in the United States. After the SEC and Ripple Labs came to a settlement to end their long-lasting court case, many investors predicted that the door to XRP ETF approval was wide open. Thus, asset management firms like Bitwise who already operate Bitcoin and/or Ethereum ETFs are targeting XRP as the next crypto investment fund.
Bitcoin and Ethereum broke new ground with their ETF approvals in the first half. Moreover, the industry has been on an upward trajectory recently. Its momentum has carried many tokens to recovery following an August crash. XRP was one of these assets, which has since climbed 9% in the past month. The news of Bitwise filing for an XRP ETF has yet to shake the price of XRP, but it surely will in the coming hours, just as similar events did for ETH and BTC.
Could SEC Put A Halt To Ripple XRP ETF Approval?
There is still the possibility of the SEC deciding to appeal the XRP decision before the end of this week. This would certainly halt any first glances and decision-making around new ETFs. Furthermore, there is speculation that Solana’s SOL asset could be in the running to become the next crypto ETF, not Ripple’s XRP.
This past summer, Ripple Labs CEO Brad Garlinghouse spoke about the SEC potentially making the fight for an XRP ETF difficult for Ripple. Garlinghouse emphatically said, “An XRP ETF is just simply inevitable.” In terms of a timeline, the Ripple CEO added, “I think we’re going to see it in 2025.” If Solana receives its XRP ETF first, a 2025 timeline could be accurate if XRP follows SOL in the application process. On the other hand, XRP could skip the line if the SEC doesn’t follow through with an appeal, which would open the door for more asset management firms to file for XRP ETFs. That wave could overwhelmingly mean XRP approval within a matter of months.
Also Read: Ripple To Break Consolidation? When Will XRP Claim Its $0.74 Level?
On the contrary, the SEC has made the path difficult for Bitcoin and Ethereum in the past for ETF approval. Hence, establishing a true timeline for the first approval and launch of XRP ETFs is too hard to call. One thing is for certain though: Bitwise will not be the last firm to file for an XRP ETF.