Asset Manager Bitwise Files for Spot XRP ETF

According to a Tuesday filing with the Delaware Division of Corporations, crypto index fund manager Bitwise has filed for a spot XRP exchange-traded fund (ETF).

Notably, this action does not necessarily mean a registration application with the U.S. Securities and Exchange Commission (SEC) is imminent. Instead, it follows a pattern in the crypto ETF market, where asset managers create trusts, signaling preparation before seeking approval from the regulator.

Bitwise Files for XRP ETF Trust

The application comes just a few months after Ripple’s CEO, Brad Garlinghouse, hinted about the upcoming financial product, describing an XRP ETF as “inevitable” following the launch of Bitcoin and Ether ETFs in the United States. 

The filing has drawn attention within the crypto community, particularly those interested in the crypto asset. 

If approved, the XRP ETF would offer institutional investors a regulated avenue to gain exposure to the cryptocurrency, potentially boosting liquidity and token adoption.

Regulatory Hurdles

While Bitwise’s new trust signals a step forward for the asset manager, the path to an approved XRP ETF may face challenges. The SEC has cautiously approached crypto-based ETFs, only recently approving Bitcoin and Ethereum ETFs after a lengthy application process and regulatory discussions.

Moreover, the SEC was embroiled in a legal fight with Ripple after the agency accused the company of raising $1.3 billion through the sale of XRP, which it views as an unregistered security. Both parties recently came to a settlement to end their long-lasting court case.

Despite the positive development, XRP price is still following the broad market movement and sits at $0.5941 at the time of writing, representing a 4.27% decrease in the last 24 hours.

Market observers are keen to see how Bitwise’s XRP ETF filing unfolds. Last month, Grayscale introduced an XRP trust that offered investors exposure to the crypto asset.