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Bitwise files for spot XRP ETF as regulatory challenges loom

Bitwise files for spot XRP ETF as regulatory challenges loom

GrafaGrafa2024/10/02 01:25
By:Mahathir Bayena

Asset management firm Bitwise has filed documentation for a spot XRP (CRYPTO:XRP) exchange-traded fund (ETF) with the Delaware Division of Corporations. 

While this move does not confirm an immediate submission to the U.S. Securities and Exchange Commission (SEC), it aligns with Ripple CEO Brad Garlinghouse’s optimistic view on the future of XRP ETFs. 

The filing, confirmed on the Delaware Division of Corporations website, marks an early step toward establishing a potential spot XRP ETF. 

The entity named "Bitwise XRP ETF" was registered with Delaware’s Division of Corporations on Monday, with CSC Delaware Trust Company listed as the registered agent. 

However, this filing does not indicate an immediate submission to the SEC, and the fund’s approval remains uncertain. 

According to a Bitwise spokesperson, this step is part of a broader strategy to expand their offerings into the XRP market. 

Ripple Labs, the creator of XRP, continues to face legal challenges from the SEC regarding the token's classification. 

The SEC has until October 7 to appeal a recent court ruling by Judge Analisa Torres, which favored Ripple regarding the programmatic sales of XRP. 

The outcome of this case could play a significant role in the future approval of an XRP ETF. 

Rumors of an XRP ETF have circulated in the past, though many have been false claims aimed at influencing the token’s price. 

For example, in November 2023, reports of a Blackrock XRP ETF filing were later proven untrue. 

Brad Garlinghouse remains confident that the SEC will approve an XRP ETF in the near future, especially following the approval of Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) ETFs earlier this year. 

He stated, “An XRP ETF is inevitable,” pointing to the growing demand for institutional investors to access regulated XRP markets

According to Garlinghouse, the approval of an XRP ETF could significantly enhance liquidity and investor participation in the token. 

At press time, the XRP price was $0.5982.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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