Bitwise Seeks Permission for XRP Exchange-Traded Fund Amid Rising Interest in Crypto ETFs
Bitwise Asset Management has made a significant stride in the cryptocurrency realm by confirming its application to launch an exchange-traded fund (ETF) based on XRP in Delaware. This strategic move comes on the heels of recent nods from the Securities and Exchange Commission (SEC) for ETFs tied to Bitcoin and Ethereum, underlining a noticeable shift towards mainstream acceptance of cryptocurrency investment avenues.
San Francisco-based Bitwise is a key player in the crypto asset management sector, offering a range of funds to investors seeking exposure to digital currencies. While the firm has acknowledged the legitimacy of the application, it has chosen to withhold detailed comments on the fund, opting to await the completion of the filing process.
The digital asset at the core of this endeavor, XRP, was created by Ripple Labs, a fintech firm dedicated to streamlining cross-border payments. Ripple and XRP, though intricately linked, now function as separate entities, adding layers of complexity to the regulatory environment. The SEC’s past clashes with Ripple have cast doubts on the potential approval of the XRP ETF. In 2020, the commission sued Ripple for $1.3 billion, alleging the company engaged in unregistered securities offerings through XRP sales to investors.
However, Ripple scored a partial legal victory recently when a judge ruled that retail XRP sales did not constitute securities. This landmark ruling has sent ripples through the crypto industry, suggesting a more favorable stance towards digital assets and their regulatory treatment. Presently, XRP is trading around $0.61, with a 3% uptick over the past week.
Industry analysts believe that greenlighting the XRP ETF could draw substantial capital inflows into the cryptocurrency market, akin to the billions attracted by recently approved crypto ETFs. An industry expert remarked, “This development could not only enhance investor trust in XRP but may also signify broader acceptance of digital assets in traditional financial markets.”
If approved, the XRP ETF would mark a significant milestone for Bitwise and could have a substantial impact on investor engagement in the cryptocurrency sphere. These moves towards regulatory clarity might open doors for more crypto-centric financial products, playing a pivotal role in shaping the landscape of digital asset investments.
All in all, Bitwise’s push for an XRP ETF marks a crucial juncture in the cryptocurrency domain, fueled by mounting institutional curiosity and changing regulatory dynamics. As the narrative between Ripple and the SEC unfolds, the fate of this application could hold profound implications for the future of cryptocurrency investments.
