Crypto asset manager Bitwise is progressing toward the potential introduction of an XRP Exchange-Traded Fund (ETF) by establishing a trust in Delaware. This recent filing with the Delaware Division of Corporations suggests that the company is laying the groundwork for an XRP ETF in the future. Interestingly, this filing has not yet appeared in the Securities and Exchange Commission's (SEC) EDGAR database, which is the customary platform for official ETF proposals. This approach is common in the crypto ETF industry, where companies often set up trusts before formally applying for SEC approval.
The development has garnered significant attention within the cryptocurrency community, particularly among supporters of XRP—the digital asset linked to Ripple. XRP has been under regulatory scrutiny for several years, making any steps toward an ETF noteworthy. However, obtaining SEC approval for an XRP ETF is expected to be challenging. The SEC has historically been cautious with crypto-based ETFs, only recently approving Bitcoin and Ethereum ETFs after prolonged periods of application and regulatory negotiation.
Bitwise's initiative follows earlier moves by industry giants like BlackRock and Fidelity, which launched Bitcoin ETFs earlier this year. These approvals indicate a potential shift in the regulatory landscape for crypto investment products. The introduction of an XRP ETF would mark a significant advancement in integrating digital assets into traditional financial markets. Nevertheless, regulatory approval is not guaranteed and could involve an extended review process.
Market participants are closely monitoring Bitwise's actions, as they could open new investment opportunities for XRP—a cryptocurrency that remains at the center of ongoing regulatory and market debates. In a related development, Grayscale introduced an XRP trust last month aimed at accredited investors in the United States. This move could pave the way for converting the trust into an ETF, all while Ripple continues to navigate its legal challenges with the SEC.
Bitwise's filing of a trust in Delaware represents a strategic step toward launching an XRP ETF, aligning with common practices in the crypto ETF sector. While the absence of a filing in the SEC's EDGAR database indicates that formal approval is yet to be sought, the move signals Bitwise's intent to expand its crypto investment offerings. As the regulatory environment evolves, the potential introduction of an XRP ETF could significantly impact both the cryptocurrency market and traditional financial sectors.
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