Breaking: Bitwise files for XRP ETF

Asset manager Bitwise has reportedly filed a spot exchange-traded fund for Ripple (XRP), the seventh-largest crypto by market cap. 

Bitwise’s XRP ETF application was filed on Sept. 30th in the state of Delaware, Fox Business journalist, Eleanor Terrett shared on X late Tuesday. 

However, gaining regulatory approval could be a long and complex process. Previous applications for the Bitcoin and Ethereum ETFs demanded a rule change and discussions with the representatives of the SEC. 

No official filing has been submitted to the SEC’s EDGAR database to this date, which is where ETF proposals are usually filed. But, a spokesperson for Bitwise has confirmed that the XRP ETF application is genuine.

If approved, Bitwise’s XRP ETF will extend digital asset participation in traditional financial markets. However, regulatory challenges could impede the process, as is common for products involving cryptocurrencies.

The approval is not certain, and there is no telling how long it will take the SEC to come to a decision. Last month, Grayscale launched an XRP fund for individual and institutional accredited investors. 

According to Rayhaneh Sharif-Askary, Grayscale’s Head of Product Research, “We believe Grayscale XRP Trust gives investors exposure to a protocol with an important real-world use case.” 

Will the ongoing Ripple-SEC legal battle impact the SEC’s decision

The ongoing legal tussle between Ripple and the SEC only makes the situation more complicated. Although Ripple got a partial win, U.S. District Judge Analisa Torres ruled that some of Ripple’s token sales were in contravention of the securities laws thus imposing a $125 million fine. It is still uncertain how this ruling will impact Bitwise’s potential XRP ETF, but it could also impact the SEC’s decision.

Ripple’s CEO, Brad Garlinghouse, had earlier on disclosed that there could be an XRP ETF in the market. In an interview, he called it “inevitable” after the successful launch of Bitcoin and Ethereum ETFs in the United States. 

In January, the SEC approved several spot Bitcoin ETFs including BlackRock, Grayscale, and Fidelity. Then, later on, the agency greenlighted eight Ethereum ETFs.

It is worth noting that the U.S. spot Bitcoin ETFs recorded the eighth consecutive day of inflows on September 30 with a net inflow of $61.30 million. The eight-day positive trend started on September 19, with net inflows of $158 million, and the daily net inflow reached $500 million on September 27.  At the time of writing, XRP was trading at $0.6068, with a 2.7% decrease over the last 24 hours.

This is a developing story