Bitwise Registers XRP ETF Trust: What This Means for Investors

Bitwise Registers XRP ETF Trust Entity in Delaware Amid Ongoing Battle

In a significant development, Bitwise Asset Management has registered an XRP exchange-traded fund (ETF) trust entity, marking a potential milestone for cryptocurrency investment. This registration, confirmed by a Bitwise spokesperson, appeared on Delaware’s Division of Corporations website, with the registered agent listed as CSC Delaware Trust Company, headquartered in Wilmington, Delaware. 

The registration date for the Bitwise XRP ETF was September 30, 2024. However, the news hasn't affected XRP price and recorded a drop of 6.62% in a day. Currently, XRP price was hovering at $0.5893 with $33,400,555,996 Billion in market cap and $2,821,546,628 in 24-hour market volume.

Registration and Ripple’s Anticipations

While the Delaware registration is a crucial step, it does not necessarily mean that an application with the United States Securities and Exchange Commission (SEC) is imminent. According to the filing, a formal SEC filing could take several months. This move follows Ripple CEO Brad Garlinghouse's prediction of an "inevitable" XRP ETF, especially after the launch of Bitcoin and Ether ETFs in the U.S.

An approved XRP ETF would enable institutional investors to gain exposure to cryptocurrency through a regulated investment vehicle, which could significantly enhance liquidity and adoption of the XRP token. The anticipation around an XRP ETF has been building, especially after a fake filing for a "BlackRock iShares XRP Trust" in November 2023 led to a 12% surge in XRP’s price. BlackRock later denied the application, and Delaware prosecutors are currently investigating the deceptive filing.

Ripple Vs SEC: Legal Battles and SEC Implications

The SEC filed a lawsuit against Ripple Labs in 2020, alleging that XRP's sale was an unregistered securities offering. In July 2023, Judge Analisa Torres ruled that XRP is not a security when sold on public exchanges, but suggested institutional sales might be securities. In September, Ripple and the SEC requested a stay on the case’s final judgment pending the SEC's appeal, which could pause further proceedings. 

Amidst this legal battle, Bitwise registered an XRP ETF trust entity in Delaware. While the registration is significant, a formal SEC filing could take months. An XRP ETF approval could boost XRP's market presence, offering a regulated investment option for institutional investors. This reflects the increasing interest in regulated cryptocurrency investment vehicles and their integration into traditional financial markets.

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