Bitwise Asset Management has filed an application for an XRP-based exchange-traded fund (ETF), following the approval of Bitcoin and Ethereum ETFs earlier this year. Bitwise confirmed to Decrypt that the filing with the state of Delaware is legitimate, signaling the firm’s ambition to add another major cryptocurrency to its ETF offerings. XRP is currently the seventh-largest cryptocurrency by market capitalization.
XRP ETF Filing Amid Regulatory Uncertainty
The application for an XRP ETF comes after the U.S. Securities and Exchange Commission (SEC) approved Bitcoin and Ethereum ETFs earlier this year, marking significant milestones for the cryptocurrency industry. These ETFs allow investors to gain exposure to cryptocurrencies through traditional stock exchanges, offering a more accessible way to participate in the crypto market without directly holding digital assets.
However, Bitwise's XRP ETF is not guaranteed approval, as the SEC has historically been cautious regarding XRP due to its legal battles with Ripple, the company behind the cryptocurrency. Ripple has faced legal scrutiny since the SEC filed a lawsuit in 2020, accusing the company of conducting unregistered securities sales. Although Ripple secured a partial victory in court in 2023, the regulatory landscape surrounding XRP remains uncertain.
Crypto ETFs Gaining Momentum
ETFs have proven to be popular investment vehicles, and crypto-based ETFs have been no exception. Following the approval of spot Bitcoin and Ethereum ETFs in the U.S., these funds have attracted billions of dollars in inflows. The introduction of an XRP ETF could further broaden the market’s appeal, providing investors with more options to gain exposure to leading cryptocurrencies.
XRP’s price is currently trading at $0.61, up 3% in the last seven days, reflecting optimism surrounding the potential ETF and the broader cryptocurrency market.
Source: Decrypt
