Asset manager Bitwise recently filed for an XRP exchange-traded fund (ETF) with Delaware’s Division of Corporations. This move, confirmed by Bitwise CIO Matt Hougan, is significant in the world of cryptocurrency investments. The filing includes a registration for a Delaware statutory trust, a legally recognized trust set up for business purposes.
Bitwise’s decision to pursue an XRP ETF comes after the success of the Grayscale Bitcoin Trust, which was converted into an ETF earlier this year. Grayscale also introduced an XRP trust on September 12, signaling increased interest in this particular cryptocurrency. The filing comes following the resolution of a four-year legal dispute between XRP’s issuer, Ripple Labs, and the US Securities and Exchange Commission (SEC), which resulted in a $125 million fine for Ripple.
Despite the positive developments for XRP, its price continues to be affected by broader market movements. At the time of writing, XRP is valued at $0.6117, down by 2.6% over the past 24 hours. The path to approval for a new cryptocurrency ETF that is not tied to Bitcoin or Ethereum may not be easy. Experts, such as Nate Geraci and Eric Balchunas, believe that obtaining regulatory approval for an XRP ETF could require political support and face significant challenges.
The filing for a Solana ETF by asset managers VanEck and 21Shares in July, along with the recent introduction of spot Ethereum ETFs, adds to the complexity of the regulatory landscape. SEC Chairman Gary Gensler’s recent comments on token classifications have added further uncertainty to the situation. With no clear guidelines on which tokens can be considered securities, the fate of Solana ETFs and potential XRP ETFs remains unclear under the SEC’s current leadership. The road ahead for crypto ETFs, including XRP, remains uncertain.
In conclusion, Bitwise’s filing for an XRP ETF represents a significant development in the cryptocurrency investment space. The ongoing legal issues facing Ripple and the broader market movements continue to impact XRP’s price. Obtaining regulatory approval for a non-Bitcoin or Ethereum ETF, such as XRP, is expected to be challenging. The regulatory landscape remains complex, with uncertainty surrounding token classifications and potential ETF approvals under the SEC’s current leadership. The outcome of Bitwise’s filing and other similar developments will shape the future of cryptocurrency investments.
