XRP ETF Filing: Bitwise Seeks SEC Approval Amid Legal Ambiguity

03-10-2024 By: Sakshi Jain

XRP ETF Filing: Bitwise Seek SEC Approval XRP ETF Amid Legal Challenge

Bitwise Asset Management has officially filed with the U.S. Securities and Exchange Commission (SEC) to launch a new Exchange-Traded Fund (ETF) focused on XRP, the cryptocurrency associated with Ripple Labs.

The proposed Spot XRP ETF aims to offer investors a regulated way to gain exposure to XRP without directly holding the asset. This filing marks a significant move by Bitwise, a key player in the cryptocurrency investment sector, as they look to expand their offerings and meet the growing demand for digital asset exposure among institutional and retail investors.

The Spot XRP ETF would be managed by BNY Mellon, with Coinbase Custody Trust Company handling the custody of XRP, bringing well-established financial institutions into the equation for added security and credibility.

By providing a regulated method to invest in XRP, Bitwise is helping to bridge the gap between traditional finance and the evolving cryptocurrency market.

XRP's Legal Status Could Impact ETF Approval

A major obstacle for the Spot XRP ETF is the ongoing legal dispute between Ripple Labs and the SEC. The SEC has accused Ripple of raising $1.3 Billion by selling XRP as an unregistered security.

This uncertainty casts a shadow over the proposed XRP ETF. Bitwise filing argues that XRP is a decentralized asset, recorded on a distributed ledger, and thus should not be classified as a security under federal laws.

However, if a court finds that XRP is indeed a security, the Spot XRP ETF could be considered an unregistered investment company, potentially leading to its liquidation.

Despite this, Bitwise remains confident in XRP’s potential and is moving forward with the filing, hopeful for a favorable resolution in the legal case. Bitwise XRP ETF approval could hinge on the outcome of the SEC-Ripple lawsuit.

The Growing Crypto ETF Market and What it Means for XRP

The launch of the Spot XRP ETF comes at a time when cryptocurrency ETFs are gaining momentum. Earlier this year, the SEC approved several spot Bitcoin ETFs, followed by Ethereum ETFs from major companies like BlackRock and Grayscale.

This shift shows growing acceptance of cryptocurrencies in traditional finance. Bitwise is looking to build on this trend with its XRP ETF, aiming to offer investors a secure, regulated option for exposure to XRP.

As XRP ETF 2024 predictions continue to evolve, the XRP ETF filing explained highlights the unique regulatory challenges the ETF faces. If approved, this could significantly boost investor confidence in XRP, further solidifying its place in the crypto ecosystem. However, as Ripple XRP ETF news continues to develop, Bitwise XRP ETF approval update remains a critical factor to watch.

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