Bitwise has filed an application to launch an XRP exchange-traded fund (ETF), as shown on Delaware’s Division of Corporations website. The document states that the Bitwise XRP ETF registered on Sept. 30, with CSC Delaware Trust Company, based in Wilmington, listed as the registered agent.
Filing in Delaware doesn’t necessarily mean a registration with the SEC is right around the corner. This could just be an early step in the process, and it might take months before any formal filing happens. This comes just a few months after Ripple’s CEO, Brad Garlinghouse, hinted at a new financial product. He described an XRP ETF as “inevitable,” especially after the U.S. saw Bitcoin and Ether ETFs launch.
XRP ETF rumors heat up after fake filing
If an XRP ETF gets approved, institutional investors will find it easier to invest in cryptocurrency through a regulated channel, which could increase liquidity and drive more people to adopt the token. Rumors have circulated lately about an XRP ETF coming soon. In Nov. 2023, XRP’s price jumped 12% after a fake filing for a “BlackRock iShares XRP Trust” in Delaware stirred up speculation about the possibility of an XRP ETF.
BlackRock’s application was eventually rejected, and now Delaware prosecutors are investigating the misleading filing. This comes after years of legal battles between the SEC and Ripple Labs. In 2020, the SEC sued Ripple, claiming that its sale of XRP was an unregistered securities offering. In July. 2023, almost three years into the case, Judge Analisa Torres decided that XRP isn’t considered a security when sold on public exchanges, giving Ripple a partial win.
However, the ruling indicated that XRP sales to institutions might still be securities offerings. By Sept. 2024, both Ripple and the SEC asked the court to hold the final judgment while the SEC’s appeal was underway. This pause would let the court wait until the appeal was settled before proceeding.
