Bitwise Files for XRP ETF After SEC’s Approval of Bitcoin and Ethereum ETFs
Bitwise is aiming to launch another major cryptocurrency exchange-traded fund (ETF), confirming to Decrypt that it has filed an application for an XRP fund with the state of Delaware. The application for an XRP-based ETF—the seventh-largest cryptocurrency by market cap—follows the U.S. Securities and Exchange Commission (SEC) approval of several Bitcoin and Ethereum ETFs from different firms earlier this year.
ETFs are popular investment products traded on stock exchanges, providing investors exposure to underlying assets. This year, crypto ETFs approved in the U.S. have gained significant traction, attracting billions of dollars in inflows in a relatively short period.
Based in San Francisco, Bitwise is a prominent crypto asset manager offering a variety of investment funds to its clients. While Bitwise has confirmed that the filing is legitimate, it declined to comment further on a fund that is still in the filing stage.
XRP was originally created by the founders of Ripple, a fintech company focused on improving cross-border payments. However, the cryptocurrency and the company now operate independently of each other.
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 to raise funds.
In a significant ruling last year, Ripple secured a partial victory when a judge declared that programmatic sales of XRP to retail investors did not constitute securities. However, the judge also ruled that $728 million worth of contracts related to institutional sales did count as unregistered securities transactions. This mixed ruling sent ripples across the industry, with many interpreting it as a win for the broader crypto sector.
XRP’s price has responded positively, currently trading at $0.61, reflecting a 3% increase over the past week.
