Bitwise Investments files in Delaware and raising speculation about a possible US-listed XRP ETF
Bitwise Investments has initiated the process of establishing a prospective XRP exchange-traded fund (ETF) by posting a document in Delaware on September 30, 2024.
A spokesperson for Bitwise verified the filing to Cointelegraph, placing it under the Division of Corporations of the State of Delaware. Nevertheless, it might be months before a formal application is submitted to the U.S. Securities and Exchange Commission (SEC), if at all. This step appears to be part of preliminary preparations.
Ana Paula Pereira’s report for Cointelegraph indicates that this development is consistent with Ripple CEO Brad Garlinghouse’s previous statements. Garlinghouse stated in May during an interview at the Consensus 2024 conference that an XRP ETF was imminent, particularly in light of the successful introduction of spot Bitcoin and Ether ETFs in the United States. An XRP ETF, if approved, would offer institutional investors a secure, regulated investment option in the cryptocurrency, potentially boosting trading volume and adoption.
The Cointelegraph report noted that the Delaware filing is a significant early step, but it does not guarantee an imminent SEC application. According to the report, the procedure may still be in the preparatory phases, and a formal filing could take months, if it occurs at all.
This news also evokes memories of the fabricated filing in November 2023, when an application for a “BlackRock iShares XRP Trust” momentarily fueled a 12% increase in the price of XRP before being debunked. The incident is still under investigation by Delaware authorities.
In the interim, Ripple remains embroiled in its legal dispute with the Securities and Exchange Commission (SEC). Although the July 2023 ruling determined that XRP was not a security in public exchanges, a recent September 2024 appeal has postponed the final decision, thereby postponing the case’s ultimate resolution.
