The leading asset management firm Bitwise has taken a significant step towards launching an XRP ETF by filing a registration for a Delaware statutory trust on September 30. The move, filed with Delaware’s Division of Corporations, has incited excitement in the crypto community, which has been eagerly awaiting the possibility of the ETF in the US market.
Nate Geraci, the President of the ETF Store, emphasized the importance of this move: “Bitwise positioning to file for XRP ETF is highly noteworthy IMO. Bitwise is a highly credible crypto-native fund firm that doesn’t just throw stuff at the wall. That’s simply not in their DNA. This is strategic.”
Ripple CEO Expects More XRP ETFs Filings Following Bitwise Application
Ripple CEO Brad Garlinghouse has predicted that more asset managers could follow Bitwise’s lead in offering an XRP ETF. Following Bitwise’s filing of the S-1 form for its Bitwise XRP ETF with the US SEC, Garlinghouse highlighted the significance of this development for XRP adoption, especially in traditional finance (TradFi). “I think it’s just a matter of time, and it’s inevitable there’s gonna be an XRP ETF, there’s gonna be a Solana ETF, there’s gonna be a Cardano ETF, and that’s great.”
This move underscores the growing trust and integration of digital assets like XRP into traditional finance, marking the continued adoption and maturation of the crypto market. Garlinghouse expressed optimism, stating, “I sense this is just the beginning.”
Garlinghouse also noted that the application for an XRP ETF wasn’t merely a matter of time, as the Spot Bitcoin and Ethereum ETFs had been approved earlier in the year. In May, he stated that an XRP ETF was inevitable and would happen at some point. The Ripple CEO was also convinced that this would occur, considering that Judge Analisa Torres had already declared that XRP isn’t a security in itself.
Notably, FOX Business journalist Eleanor Terrett disclosed that Canary Capital has also incorporated an XRP ETF with the Delaware Division of Corporations website, although there is yet to be an official filing with the SEC.
Is Grayscale Up Next?
Meanwhile, the Ripple CEO stated that Bitwise’s move underscores the growing trust and integration of digital assets like XRP into TradFi. Grayscale could be one of the next asset managers to file for an XRP ETF. Notably, Grayscale recently launched its Grayscale XRP Trust, which the asset manager could easily apply to the SEC to convert to an ETF.
Bitwise’s S-1 filing is also significant for the Ripple CEO and his firm, as it ensures that institutional investors now recognize XRP’s status as a commodity instead of a security. The choice to register in Delaware is also telling, as the state has favorable regulations and taxes. BlackRock also chose Delaware to register its Ethereum ETF.
Concerns Over SEC’s Appeal
However, there’s concern within the crypto community that the realization of an XRP ETF could be delayed if the SEC decides to appeal the decision by Judge Torres before the end of the week. The potential appeal by the SEC adds a layer of uncertainty to the otherwise promising developments in the XRP ETF space.
In conclusion, Bitwise’s strategic move to file for an XRP ETF marks a significant milestone for the crypto market, especially for XRP’s integration into traditional finance. With predictions from industry leaders like Brad Garlinghouse and the potential involvement of other asset management firms like Grayscale, the future of XRP ETFs looks promising. However, the community remains cautiously optimistic, keeping a close eye on the SEC’s next moves.
