Bitwise XRP ETF Application Emerges
According to Cointelegraph, a filing regarding the Bitwise XRP Exchange-Traded Fund (ETF) has recently appeared on the Delaware Secretary of State's website. The documents indicate that the Bitwise XRP ETF was registered on September 30, 2024, with the registered agent being CSC Delaware Trust Company located in Wilmington, Delaware.
It is important to note that the submission of this application in Delaware does not represent a registration application filed with the U.S. Securities and Exchange Commission (SEC); this may simply be early preparation for a future ETF launch, and it may take several months before a formal SEC application is submitted.
Ripple CEO Previously Hinted at the Emergence of XRP ETF
The submission of this application coincides with Ripple CEO Brad Garlinghouse's earlier predictions regarding the XRP ETF. After the launch of Bitcoin and Ethereum ETFs in the U.S., he stated that an XRP ETF was "inevitable." If the XRP ETF ultimately receives approval, it would allow institutional investors to participate in the XRP market through regulated investment vehicles, potentially enhancing liquidity and token adoption.
Rumors and Impact of XRP ETF
In recent months, there have been ongoing rumors about the listing of an XRP ETF. In November 2023, a fake "BlackRock iShares XRP Trust" application appeared in Delaware, sparking speculation in the market about the imminent launch of an XRP ETF, which drove the XRP price up by as much as 12%. However, this application was ultimately denied by BlackRock, and the Delaware Attorney General's office is currently investigating the truth behind this fraudulent application.
Long-standing Dispute Between SEC and Ripple
The emergence of Bitwise's application in Delaware coincides with the SEC's long-standing legal dispute with Ripple Labs. The SEC sued Ripple in 2020, alleging that its sale of XRP constituted an unregistered securities offering. However, in July 2023, Judge Analisa Torres ruled that XRP is not considered a security when sold on public exchanges, granting Ripple a partial victory, although XRP sold to institutions may still be viewed as a securities offering.
In September 2024, the case saw new developments, with both the SEC and Ripple jointly requesting a delay in the final judgment of the case to await the outcome of the SEC's appeal. If the request is granted, the court will suspend further litigation proceedings until the appeal results are released.
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