Bitwise Files for Groundbreaking XRP ETF—Poised to Ignite a Major Investment Boom!

Bitwise, a well-known cryptocurrency asset management and exchange has made a big move by introducing an ETF based on Ripple’s cryptocurrency, XRP.

In order to establish a trust that would act as the basis for this new ETF, the company verified that it has properly applied to the state of Delaware. This action comes in the wake of the U.S. SEC recently approving Bitcoin and Ethereum ETFs, which sparked a resurgence of interest in cryptocurrency investment products.

JUST IN: Bitwise files for spot XRP ETF.

— Watcher.Guru (@WatcherGuru) October 1, 2024

Bitwise’s First-Ever XRP ETF Could Revolutionize Investing

An ETF is a type of financial vehicle that lets people purchase shares that replicate the market value of an underlying asset, such a cryptocurrency. Due to their trading on stock markets, these funds are available to both major institutions and regular investors. Millions of dollars have been invested in cryptocurrency ETFs in the United States in 2024, a very short time since they were authorized.

With a base in San Francisco, Bitwise is a provider of investment funds that concentrate on digital assets. According to the company’s most recent filing, asset managers are increasingly forming trusts prior to formally registering an ETF with the SEC.

Ripple’s Legal Battle: Turning Point for XRP?

XRP has a connection to Ripple, a finance startup that wants to speed up international transfers. On the other hand, Ripple and the SEC have been involved in a protracted legal battle since the latter claimed that XRP was unregistered securities. The huge $1.3 billion fine against Ripple was the target of this 2020 lawsuit.

With the recent ruling by a judge that sales of XRP to individual investors did not meet the criteria for securities transactions, Ripple achieved a partial success.

Nonetheless, the same decision found that some institutional sales did break securities regulations. A $125 million fine was imposed on Ripple, a substantial decrease from the SEC’s initial demand. Uncertainty has been raised over XRP and its possible ETF due to this inconsistent result.

A federal judge has imposed a $125 million fine on Ripple after finding last year that its institutional sales of $XRP violated federal securities laws.https://t.co/7oDUpPm6xV

— CoinDesk (@CoinDesk) August 8, 2024

XRP ETF Faces Key Challenges Ahead

Even with the recent verdict in favor of Ripple, it is not guaranteed that an XRP ETF will receive SEC approval. The SEC has been cautious in approving crypto ETFs, as seen with the time it took to approve Bitcoin and Ethereum funds.

The clearance process for the XRP ETF may be greatly impacted by the SEC’s decision to appeal the recent finding in favor of Ripple.

The cryptocurrency world, particularly those interested in XRP, has taken notice of Bitwise’s application for an XRP ETF. XRP is presently trading at roughly $0.61, up 3% from the previous week. The XRP ETF offers a different avenue for conventional investors wishing to get into the cryptocurrency market, and if approved, it may draw significant investment.

Future Outlook: What Lies Ahead for the XRP ETF?

The CEO of Ripple, Brad Garlinghouse, is upbeat about the prospect of an XRP ETF and says it might happen as soon as 2025. An extended wait for investors may be necessary, as the SEC has had a record of holding up the clearance process for cryptocurrency ETFs.

The application follows Ripple CEO Brad Garlinghouse's comment from earlier this year, calling an $XRP ETF "inevitable" after the launch of Bitcoin and Ether ETFs in the US. https://t.co/K5vBsyCCl9

— Cointelegraph (@Cointelegraph) October 1, 2024

Bitwise’s application to the Delaware court for an XRP trust is a significant step forward in the cryptocurrency space and may lead to additional XRP investment options. The increasing popularity of cryptocurrency ETFs suggests that the way digital assets are incorporated into traditional finance may change, even though the regulatory landscape is still difficult. Market watchers will be keenly observing the SEC’s next move with respect to the XRP ETF as well the present legal dispute involving Ripple.