Bitwise has officially filed for an XRP exchange-traded fund (ETF). This filing, confirmed by a company spokesperson, was submitted on September 30, 2024, and is listed on Delaware’s Division of Corporations website. While this is a major step, it’s only the beginning of what could be a lengthy process before the ETF gets the green light from regulators like the U.S. Securities and Exchange Commission (SEC).
A New Gateway for Institutional Investors?
The proposed Bitwise XRP ETF could offer institutional investors an easier, regulated way to gain exposure to XRP, one of the most talked-about cryptocurrencies. Much like recent ETFs for Bitcoin and Ethereum, this product would allow traditional financial players to invest in XRP without directly holding the cryptocurrency. If approved, the ETF could increase liquidity and boost XRP’s adoption across a broader investor base.
Ripple’s CEO, Brad Garlinghouse, has long been vocal about the potential for an XRP ETF, even calling it “inevitable” after the launch of similar products for Bitcoin and Ethereum. His comments seem to align with Bitwise’s filing, signaling that the timing may finally be right.
Legal Clouds Looming
However, the journey to approval may not be straightforward. Ripple, the company behind XRP, is still embroiled in a long-running legal battle with the SEC. This case has been ongoing since 2020, when the SEC accused Ripple of conducting an unregistered securities offering through the sale of XRP. While there was a partial victory for Ripple in 2023, legal challenges remain unresolved, which could influence how regulators approach Bitwise’s application.
In fact, the SEC has been notably cautious when it comes to cryptocurrency ETFs. It took years of debate and multiple filings before Bitcoin and Ethereum ETFs were approved, so there’s no guarantee that the XRP ETF will breeze through the regulatory process.
A Growing Trend
This filing is part of a broader trend of crypto ETFs gaining ground in traditional markets. Earlier this year, major players like BlackRock and Fidelity successfully launched Bitcoin ETFs, indicating a shift in how regulators view crypto-based financial products. Bitwise’s XRP ETF could represent the next chapter in that evolution.
For now, market participants are eagerly watching Bitwise’s next steps, as an approved XRP ETF could signal another major leap forward for the integration of cryptocurrencies into mainstream finance. However, with the SEC’s cautious approach and Ripple’s ongoing legal challenges, the road to approval remains uncertain.
