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Bitwise, a leading crypto asset manager, filed an XRP ETF trust in Delaware. It has created anticipation owing to the previous legal issues regarding XRP.
Let us describe what this filing is and why it is vital for both XRP and the cryptocurrency market as a whole.
What Happened?
Bitwise established the XRP ETF trust on the 30th of September 2024 with the Division of Corporations of the State of Delaware. Bitwise is moving towards bringing an XRP ETF that could change the crypto space.
CSC Delaware Trust Company registered the Trust in Wilmington, Delaware. This is the first filing towards that end, but it does not mean the approval of an XRP ETF. However, registering in Delaware is significant; the application to the U.S. SEC may take several more months.
After the trust was registered in Delaware yesterday, @BitwiseInvest just officially filed for their XRP ETF with the SEC. pic.twitter.com/im9GzFWX55
— James Seyffart (@JSeyff) October 2, 2024
Why an XRP ETF?
An XRP ETF will enable accredited investors to get exposure to the digital asset in a regulated product they understand. It may cause more people to use XRP as more significant investors will likely have the regulated fund to invest in the token.
Ripple’s CEO, Brad Garlinghouse, suggested early this year that an XRP ETF was a “done deal” given the Bitcoin and Ether ETFs that have already received the green light in the U.S.
Bitwise issues press release on XRP ETF filing…
Not something you see everyday.
“We believe blockchains will usher in new, apolitical monetary assets and permissionless applications for the 21st century.”https://t.co/djfKJEEoDT pic.twitter.com/YGnhEdavDM
— Nate Geraci (@NateGeraci) October 2, 2024
The Ripple Effect: Legal Disputes and XRP
Bitwise’s filing occurred despite the several years of ongoing litigation between Ripple Labs (the company behind XRP) and the SEC. Earlier in 2020, the SEC took Ripple to court, alleging that the sale of XRP constituted an unlawful security sale.
In July 2023, Judge Analisa Torres dismissed XRP as a security when sold on public exchange. This ruling favored Ripple, but issues like sales involving institutions still exist.
In September 2023, the SEC and Ripple sought a stay (a pause) to the legal process, waiting for an appeal to proceed.
The chances of a settlement went up 10 fold now! that Torres has written in law that XRP is not an investment contract!
watch full version here: https://t.co/V6j3oAnoXH pic.twitter.com/BxzHIkHWRI
— crypto.Darren (@Fame21Moore) July 20, 2023
Past Rumors and Market Reaction
This filing also occurred during several months of speculations on the XRP ETF. For instance, in November 2023, the price of XRP increased by 12% due to the circulation of BlackRock XRP ETF. But those rumors are a forgery, and BlackRock stated they had no part in it. The Delaware prosecutors are still probing that case.
JUST IN BlackRock Has No Plans For A Spot #XRP ETF. Do The Opposite When They Give Statements Like This pic.twitter.com/I2GM8QCkcn
— XRP CAPTAIN (@UniverseTwenty) January 18, 2024
What’s Next?
The filing in Delaware does not guarantee we will witness an XRP ETF soon. That would be useful, although Bitwise would still have to apply to the SEC, which might take some time, they added. Approval for an XRP ETF could be a big success for this cryptocurrency. It would go a long way in lending the digital asset even more legitimacy, besides upping its liquidity.
Instead, as of this writing, we can only watch and cross our fingers. An XRP ETF is also a milestone in the development of Ripple and all the members of the cryptocurrency market.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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