Wealth manager Bitwise has registered a Delaware Trust for a fund that would track Ripple’s native cryptocurrency, XRP.

Bitwise Registers Delaware Trust for XRP Fund

Bitwise, a prominent issuer of Bitcoin and Ethereum exchange-traded funds (ETFs), has filed for an XRP ETF in Delaware. This move aims to expand Bitwise’s cryptocurrency offerings. The next step for this Bitwise XRP trust likely involves a registration application with the U.S. Securities and Exchange Commission (SEC).

Regulatory Challenges Ahead

Given the history of crypto ETF bids, Bitwise may face a lengthy regulatory process. This often involves a proposed rule change and extensive engagement with SEC staff for feedback. Notably, Grayscale, another crypto ETF issuer, launched an XRP fund for accredited investors last month.

Institutional Adoption of Crypto ETFs

This year, the debate has intensified on how many more digital assets will adopt the institutional ETF structure and debut on Wall Street. The SEC’s cautious stance on cryptocurrencies has often been a stumbling block for these products, especially those beyond Bitcoin and Ethereum.

“According to SEC Chair Gary Gensler, most cryptocurrencies are securities, and issuers must register with the regulator.”

The SEC’s enforcement division has also sued several crypto businesses, including Ripple, the creator of XRP, for allegedly violating securities laws.

Ripple’s Legal Battles

Ripple scored a partial victory against the SEC but was ordered to pay $125 million in fines. U.S. District Judge Analisa Torres declared that over 1,200 institutional sales of Ripple’s token violated federal securities laws. The impact of this ruling on future ETFs based on Ripple’s cryptocurrency remains uncertain.

Future Prospects for XRP ETFs

Ripple CEO Brad Garlinghouse has previously stated that more crypto ETFs are inevitable following the success of Bitcoin products. At the Consensus 2024 event in May, Garlinghouse predicted an XRP ETF in the coming months. Additionally, Ripple has plans for a stablecoin designated for its company ledger and Ethereum’s blockchain.

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