Bitwise files XRP ETF in Delaware 

Asset manager Bitwise has enlisted Delaware Trust for a fund that will track Ripple’s native cryptocurrency, XRP.

Bitwise, a Bitcoin (BTC) and Ethereum (ETH) exchange-traded fund issuer, has filed for an XRP (XRP) ETF in the state of Delaware as the firm plans to expand its crypto offerings. The next step for a potential Bitwise XRP trust would likely include applying for registration with the U.S. Securities and Exchange Commission.

Considering previous crypto ETF offerings, Bitwise may be heading into a lengthy regulatory process that includes a proposed rule change and interaction with SEC staff for feedback. Fellow crypto ETF issuer Grayscale also launched an XRP fund for accredited investors last month.

This year, many have debated how many more digital assets will be included in institutional ETFs and launched on Wall Street. The SEC’s reluctance towards cryptocurrencies is often cited as a hurdle, especially for these products outside of BTC and ETH.

According to SEC chairman 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 XRP’s creator Ripple, for allegedly violating securities laws.

Ripple achieved a partial victory against the SEC, but a court ordered it to pay a $125 million fine. U.S. District Judge Analisa Torres declared that more than 1,200 institutional sales of the Ripple token violated federal securities laws. It is not yet known how this decision will affect Ripple’s future cryptocurrency-based ETFs.

Ripple CEO Brad Garlinghouse has previously said that more crypto ETFs are inevitable following the success of Bitcoin products. At Consensus 2024 in May, Garlinghouse predicted an XRP ETF in the coming months. The firm also has a dedicated stablecoin plan for the corporate ledger and Ethereum’s blockchain.