Asset manager Bitwise filed for an XRP exchange-traded fund (ETF) with Delaware’s Division of Corporations on September 30th. This filing initiates the establishment of a Delaware statutory trust, a recognized business entity in the state.
Similar to how companies like BlackRock and Fidelity registered trust entities for Bitcoin (BTC) and Ethereum (ETH) before filing to list ETFs based on these cryptocurrencies, Bitwise’s registration of a trust entity is seen as the first step toward launching an XRP ETF.
Ripple Settlement Clears Path for Potential XRP ETF
Recently, Grayscale announced plans to introduce an XRP Trust investment product, which could potentially be converted into an XRP ETF in the future. Grayscale had previously halted its XRP-related trust in 2021 due to the SEC’s lawsuit against Ripple Labs over the alleged sale of XRP as an unregistered security. However, the case was settled earlier this year with Ripple paying $200 million, clarifying XRP’s regulatory status and allowing U.S. exchanges to relist the cryptocurrency.
With the regulatory path now clearer, companies like Grayscale are once again exploring XRP-related investment products. However, the broader regulatory environment for cryptocurrencies remains uncertain, and for any XRP ETF to succeed, it will need to comply with the SEC’s stringent regulations, especially given past disputes surrounding XRP’s classification.
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