Asset Manager Bitwise Registers XRP ETF Trust in Delaware

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

October 2, 2024 01:14 EDT

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Asset manager Bitwise submitted a filing for an XRP exchange-traded fund (ETF) to Delaware’s Division of Corporations on Sept. 30. This filing includes the registration for establishing a Delaware statutory trust, which is a business-oriented trust legally recognized in the state.

Companies like Bitwise, BlackRock, and Fidelity first registered trust entities for Bitcoin (BTC) and Ethereum (ETH). This step came before they filed to list and trade ETF shares based on these cryptocurrencies. In the same way, registering a trust entity is the initial step toward filing for an ETF listing and trading.

Ripple Settlement Clears Path for Potential XRP ETF Launch

Last month, Grayscale revealed plans to launch an XRP Trust investment product, with the potential to convert it into an XRP ETF in the future.

In 2021, Grayscale had to shut down its previous trust due to the SEC’s lawsuit against Ripple Labs, which accused Ripple of selling XRP as an unregistered security. However, that legal dispute ended earlier this year, with Ripple settling with the SEC for $200m.

The resolution of XRP’s regulatory status has paved the way for US exchanges to relist XRP and allowed companies like Grayscale to develop new XRP-related investment products.

Nevertheless, the regulatory landscape for cryptocurrencies continues to be unpredictable.

For an XRP ETF to become a reality, it would have to comply with SEC regulations, which have shown a cautious approach towards crypto ETFs, particularly in light of the previous disputes over XRP’s classification as a security with Ripple.

Image Source: Delaware Divison of Corporations

XRP was last down 2.7% to $0.60 on Wednesday, reflecting a wider slump in the cryptocurrency market influenced by escalating tensions between Iran and Israel.

Ripple CEO Champions XRP ETF Potential

In February, Ripple CEO Brad Garlinghouse voiced his support for an XRP ETF. He suggested that investors would appreciate this financial instrument for the diversification it provides.

“I think it only makes sense,” he said in a Bloomberg interview. “There will be other ETFs too. It’s a little like the earliest days of the stock market. You don’t really want exposure to one stock, or one company. You want to typically think about diversifying risk… and so I think we will see other ETFs,” he added.