Bitwise Asset Management has registered a trust entity in Delaware, potentially signaling plans to file for a spot XRP ETF despite existing regulatory hurdles with the SEC.
Bitwise Registers Trust Entity
Bitwise Asset Management has taken a significant step toward launching a spot XRP exchange-traded fund (ETF) by registering a trust entity in Delaware. This move, confirmed by the company’s CEO Matthew Hougan, has garnered attention as it could signal the company’s intent to file for an XRP ETF in the future.
The trust, registered on September 30, lists CSC Delaware Trust Company as its registered agent in Wilmington, Delaware. Although this registration appears on Delaware’s Division of Corporations website, it does not necessarily indicate an imminent filing with the United States Securities and Exchange Commission (SEC). The process for obtaining approval could take months as regulatory hurdles remain in place.
Ripple's Legal Battle and XRP ETF Prospects
Bitwise’s registration comes amid ongoing developments in Ripple’s legal case with the SEC. The regulatory body has accused Ripple of raising $1.3 billion through unregistered XRP sales, labeling the cryptocurrency as a security. However, following a recent settlement between Ripple Labs and the SEC, many in the crypto space believe the path to an XRP ETF is now clearer.
This settlement has led to growing optimism among investors, many of whom expect the SEC to eventually approve XRP ETFs. Bitwise, which already manages Bitcoin and Ethereum ETFs, is likely positioning itself to capitalize on XRP’s potential as the next major cryptocurrency-based fund.
Industry Reactions
The registration also comes on the heels of comments from Ripple’s CEO, Brad Garlinghouse, who previously described an XRP ETF as "inevitable." Garlinghouse noted that the introduction of Bitcoin and Ethereum ETFs in the U.S. market could pave the way for other cryptocurrency ETFs, including XRP.
Despite the settlement, uncertainty still lingers over the SEC’s stance on XRP. The agency has until the end of this week to decide whether to appeal the Ripple decision. Any such action could delay progress on XRP ETFs, pushing potential approval timelines further into the future. Garlinghouse suggested that 2025 could be a realistic timeline for the first XRP ETF, depending on whether the SEC pursues further legal challenges.
Broader Market Developments
While XRP remains in the spotlight, other assets, like Solana (SOL), are also contenders for future ETF approvals. Some analysts speculate that Solana could receive approval before XRP, which may further delay XRP’s entry into the ETF market.
The SEC has already approved multiple spot Bitcoin and Ethereum ETFs, including those managed by leading firms like BlackRock, Grayscale, and Fidelity. Additionally, Grayscale has announced plans for an XRP "closed-end" fund targeting accredited investors, signaling continued interest in XRP despite regulatory challenges.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
