Bitwise has taken steps to launch the first-ever spot XRP ETF by filing with the SEC. However, the Commission's decision remains uncertain due to recent legal disputes involving Ripple and XRP.

Bitwise's XRP ETF Filing

On September 30, Bitwise submitted its application to the SEC, aiming to create a trust that would hold XRP in the same manner as their Bitcoin and Ethereum ETFs. According to the recent filing, the ETF's net asset value would be determined by the CME CF Ripple-Dollar Reference Rate, which aggregates trade data from major XRP platforms to provide accurate pricing. This ETF would offer investors exposure to XRP without directly holding the asset.

Legal Background of Ripple Case

The outcome of Bitwise's XRP ETF largely depends on the SEC's response to a recent court decision regarding Ripple. In July 2023, a U.S. court ruled that XRP sales on secondary markets to retail investors are not classified as securities. SEC Chair Gary Gensler has previously supported only Bitcoin and Ethereum ETFs due to regulatory concerns surrounding other cryptocurrencies.

Bitwise Moves Forward Despite Uncertainties

Despite potential obstacles, Bitwise has pushed ahead with its ETF filing, submitting it in Delaware, known for its favorable regulatory environment. The SEC's history with cryptocurrency ETFs suggests the process will not be quick, as even Bitcoin and Ethereum took months to gain approval.

Bitwise’s XRP ETF filing signals growing interest in crypto ETFs, but the SEC’s stance on non-Bitcoin and Ethereum crypto assets remains cautious. Additionally, some analysts believe that external political factors could influence the SEC’s decision.