Crypto asset manager Bitwise has taken the first step toward launching an XRP exchange-traded fund (ETF) by filing a trust registration with the State of Delaware. The move signals growing institutional interest in XRP despite ongoing regulatory challenges.
Key Details of the Bitwise XRP ETF Filing
- Registration Date: September 30, 2024
- Registered Agent: CSC Delaware Trust Company (Wilmington, DE)
- Current Status: Preliminary trust formation (not an SEC application)
A Bitwise spokesperson confirmed the registration to Cointelegraph, clarifying this is an early-stage administrative process. The filing does not indicate when—or if—the company will submit a formal proposal to the SEC.
Why This XRP ETF Matters
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An approved XRP ETF would:
- Provide regulated exposure to XRP for institutional investors
- Potentially increase liquidity and mainstream adoption
- Serve as a market validation for XRP despite SEC litigation
Ripple CEO Brad Garlinghouse previously predicted such products were "inevitable" following the US approval of Bitcoin and Ether ETFs earlier in 2024.
Regulatory Context: SEC vs. Ripple
The filing occurs amid Ripple's ongoing legal battle with the SEC:
- 2020: SEC sued Ripple over XRP's classification as a security
- July 2023: Court ruled XRP isn't a security when sold on exchanges
- Pending: Appeal regarding institutional XRP sales
This partial legal clarity may encourage ETF issuers, though SEC approval remains uncertain.
Caution Against Premature Speculation
Investors should note:
- Delaware registrations are administrative (not regulatory approvals)
- Fake ETF filings have previously manipulated XRP's price
- BlackRock denied a similar "iShares XRP Trust" filing in 2023
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FAQs About the Potential XRP ETF
Q: Does this filing mean the XRP ETF is approved?
A: No. This is only a trust registration—SEC approval would require a separate, lengthy process.
Q: How long until Bitwise submits an SEC application?
A: No timeline exists. Many registered trusts never progress to SEC filings.
Q: Would an XRP ETF be good for Ripple?
A: Yes—it would validate XRP's market position and attract institutional capital.
Q: Could the SEC block an XRP ETF?
A: Potentially, given their ongoing case against Ripple, though the 2023 court ruling helps XRP's case.
Market Implications
While exciting for XRP enthusiasts, this development represents just one step in a multi-stage process. The crypto community should monitor:
- SEC's stance on XRP post-Ripple ruling
- Bitwise's next moves (if any)
- Broader institutional crypto adoption trends
The path forward remains unclear, but this filing underscores Wall Street's growing interest in crypto-native assets beyond Bitcoin and Ethereum.