Bitwise aims to launch a new significant cryptocurrency ETF by filing for an XRP fund in Delaware. This follows the SEC’s approval of Bitcoin and Ethereum ETFs earlier this year.
Application for XRP ETF
Bitwise confirmed to Decrypt that it has filed an application for an XRP ETF, referring to the filing documentation in Delaware. XRP, ranking as the seventh-largest cryptocurrency by market cap, may become the next popular product for investors following the SEC’s approval of several Bitcoin and Ethereum ETFs.
History and Importance of XRP
XRP was originally created by the founders of Ripple, a company focused on improving cross-border payments. However, the cryptocurrency and the company now operate independently. San Francisco-based Bitwise is a prominent crypto asset manager offering a variety of investment funds.
Legal Aspects and Market Reaction
Approval of an XRP ETF is not guaranteed, particularly after years of legal disputes between the SEC and Ripple. In 2020, the SEC filed a $1.3 billion lawsuit against Ripple, accusing the company of selling unregistered securities through XRP. Last year, Ripple secured a partial victory when a judge declared that programmatic sales of XRP to retail investors did not constitute securities, but $728 million worth of contracts related to institutional sales were deemed unregistered securities transactions. Following this, XRP has shown positive dynamics, currently trading at $0.61, reflecting a 3% increase over the past week.
Bitwise's application for an XRP ETF is a significant event in the world of cryptocurrency investments. The further development of this situation is expected to be closely monitored by investors and regulators.
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