Bitwise Shoots for XRP ETF—Will It Survive the SEC’s Scrutiny?

• Bitwise has made waves in the financial world with a bold XRP ETF initiative.
• A Delaware trust registration has ignited both anticipation and doubt.
• Ripple’s ongoing legal battles with the SEC have introduced new complexities.

Bitwise, a major player in cryptocurrency asset management, is making waves by taking a bold step toward launching an XRP-focused exchange-traded fund (ETF). The firm registered a trust entity in Delaware, signaling its intent to bring an XRP ETF to the market. 

This registration was confirmed on the state’s Division of Corporations website Tuesday, marking the first concrete move in the process. This isn’t just paperwork; it’s a critical milestone. Other financial heavyweights like BlackRock and Fidelity took the same path before debuting their Bitcoin and Ethereum ETFs. 

XRP ETF Filed by Bitwise, Market Unshaken

A spokesperson from Bitwise confirmed the filing, dispelling any doubt about the firm’s ambition to tap into XRP’s potential in the traditional finance space. Despite this development, XRP, the digital token tied to Ripple, barely flinched in response. Its price remained stable, even as the broader crypto market saw steep declines in the last 24 hours. 

The market’s cool reaction might be due to skepticism, especially after past rumors about an XRP ETF—like last year’s false BlackRock filing—proved to be bogus. Still, the path ahead is anything but straightforward. The SEC’s approval process for cryptocurrency ETFs has been a notorious obstacle. 

Prior applications for Bitcoin and Ethereum ETFs faced lengthy regulatory challenges, including SEC rule changes and high-level talks. While Bitwise’s Delaware filing is a significant move, it hasn’t yet appeared in the SEC’s EDGAR database, where formal ETF proposals land. 

Will Bitwise’s XRP ETF Break Ground?

If Bitwise gets the green light, the XRP ETF could be a game-changer, offering traditional investors exposure to one of the top cryptocurrencies. However, Ripple’s ongoing legal clash with the SEC could cloud the outcome. Earlier this year, a U.S. judge ruled that some of Ripple’s XRP sales violated securities laws, leading to a hefty $125 million fine. 

The question is how much this ruling might influence the SEC’s decision on Bitwise’s ETF bid. As XRP continues to hover around $0.5903—down 6.6% in the last 24 hours—the crypto world waits to see if Bitwise’s move will break new ground or hit regulatory roadblocks.

On the Flipside

• While Bitcoin and Ethereum ETFs have been approved, XRP’s ongoing legal issues with the SEC could still hinder its approval.
• Investors might be cautious about an XRP ETF until there’s clear legal and regulatory guidance on XRP’s status.
• Other major asset managers have not pursued XRP ETFs yet, possibly indicating industry reservations about regulatory challenges.

Why This Matters

Bitwise’s audacious move to introduce an XRP ETF could act as a catalyst for redefining regulatory boundaries. It could force a shift in how legally contentious cryptocurrencies are perceived and integrated into mainstream finance, thereby influencing the future accessibility and legitimacy of altcoins in the broader crypto market.

To learn more about Ripple’s recent approval for financial services in Dubai and its implications for global digital payments, read here:
Why Ripple’s Huge Win in Dubai Is a Crypto Game-Changer

Despite the SEC’s pressure, XRP’s recent rally shows its potential to disrupt finance. To learn more about XRP’s future and its potential partnership with SWIFT, read here:
XRP Defies the Odds with Explosive Rally Despite SEC Pressure