Crypto Fund Manager Bitwise Files Application For Spot XRP ETF

Updated: 02 October 2024

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Crypto fund manager Bitwise has filed for a spot XRP ETF (exchange-traded fund) that would allow investors to gain exposure to Ripple’s native XRP token.

The Bitwise XRP ETF was incorporated on Sept. 30 with CSC Delaware Trust Company listed as the registered agent, according to the filing.

Ripple CEO Said XRP ETF ”Inevitable”

The filing in Delaware comes just months after Ripple’s CEO, Brad Garlinghouse, said that an XRP ETF in the US is “inevitable.” This followed the launch of similar products associated with the crypto market leaders Bitcoin (BTC) and Ethereum (ETH) this year.

If approved, a spot XRP ETF would give investors the ability to buy into the remittance token through a regulated vehicle. This could subsequently boost liquidity for the altcoin.

In November 2023, rumors of a BlackRock spot XRP ETF launch began to circulate after a fake filing for a “BlackRock iShares XRP Trust” in Delaware was made. This caused the price of XRP to spike 12%, but it then erased these gains after the trillion dollar asset manager denied that the application was submitted by them.

Ripple’s Lawsuit With The SEC

Ripple has been tied up in a long-running lawsuit with the SEC that began in 2020, when the regulator sued the fintech for the alleged sale of unregistered securities through its XRP token.

Almost 3 years later, Judge Analisa Torres ruled that the remittance token is not a security when sold on public exchanges. Institutional sales could, however, be considered as securities offerings, according to the ruling. Ripple’s executives hailed the ruling as a massive victory for Ripple.

The SEC asked for $2B, and the Court reduced their demand by ~94% recognizing that they had overplayed their hand. We respect the Court’s decision and have clarity to continue growing our company.

This is a victory for Ripple, the industry and the rule of law. The SEC’s…

— Brad Garlinghouse (@bgarlinghouse) August 7, 2024

Investors have also started to slowly buy into XRP following a stagnation period in the years after the lawsuit was filed. In the last 12 months, the crypto’s price has risen more than 15%.

Much of this gain was recorded in the last month, with the altcoin climbing over 10% during this period.