Bitwise Files for XRP ETF with New Trust Formation

Bitwise Asset Management has made significant progress toward launching an XRP ETF. According to a recent filing with the Delaware Division of Corporations, Bitwise has established a trust that could form the foundation of this potential product on Ripple’s native token.

Bitwise Files for XRP ETF Trust

The creation of a trust is a critical step often taken by asset managers before pursuing approval for an ETF from the U.S. Securities and Exchange Commission (SEC). This approach mirrors the strategies seen with previous crypto-based ETFs. If successful, an XRP ETF could provide investors with a more accessible and regulated way to gain exposure to the popular crypto.

XRP, which has been subject to intense regulatory scrutiny, remains a focal point in the digital asset market. Moreover, Ripple has faced a prolonged legal battle with the SEC over the classification of the token as a security, which has impacted its status. Hence, the launch of an XRP ETF would mark a grand comeback for the firm.

Bitwise’s filing comes at a time when the SEC has shown signs of softening its stance toward crypto-based ETFs. It follows the recent approvals of spot Bitcoin and Ethereum ETFs from financial giants such as BlackRock, Grayscale, Fidelity and others.

These developments suggest that the regulatory environment for crypto assets is shifting, though challenges remain. The SEC has historically been cautious when it comes to greenlighting crypto investment vehicles, with each application subjected to thorough regulatory scrutiny.

Regulatory Hurdles

While Bitwise’s new trust signals a step forward for XRP, the road to an approved ETF is far from guaranteed. The regulatory process could be drawn out, with the SEC potentially raising concerns around the token’s legal standing and market volatility. However, a pro-crypto administration under former President Donald Trump or even Vice President Kamala Harris could turn the tables.

Market observers, however, are keen to see how this filing will unfold. As of now, Bitwise has not publicly commented on its intentions regarding the filing, leaving market participants to closely monitor further developments.

It’s also important to note that this move follows Grayscale’s recent introduction of an XRP trust in the U.S. aimed at accredited investors. Moreover, Grayscale’s product could be seen as laying the groundwork for a future XRP ETF conversion.

Also Read: XRP Price Dips as SEC Left With One Week to Appeal in Ripple Case