Nikolas Sargeant
Asset management firm Bitwise has taken a crucial step towards launching an XRP exchange-traded fund (ETF) by registering an XRP ETF Trust with Delaware's Division of Corporations on September 30. This move mirrors the strategy employed by major players like BlackRock and Fidelity when developing their Bitcoin and Ethereum ETF proposals.
The registration of a Delaware statutory trust is typically the first stage in the ETF creation process, preceding the formal application for listing and trading ETF shares. This development comes in the wake of Ripple's recent legal settlement with the SEC, which has revitalized interest in XRP-based investment products.
XRP's Regulatory Clarity Opens New Opportunities
Following the resolution of Ripple's legal battle with the SEC, the cryptocurrency landscape has shifted favorably for XRP. This change has prompted US exchanges to reconsider listing XRP and encouraged firms like Grayscale to explore XRP-based investment vehicles.
However, the path to an approved XRP ETF remains challenging. Any such product would need to navigate the SEC's stringent regulations, which have been particularly cautious regarding cryptocurrency ETFs. The Commission's previous concerns about XRP's classification as a security continue to cast a shadow over potential approvals.
Industry Support and Market Reactions
Ripple CEO Brad Garlinghouse has expressed enthusiasm for an XRP ETF, highlighting its potential for portfolio diversification. "I think it only makes sense," Garlinghouse stated in a Bloomberg interview, drawing parallels to the early days of stock market investing.
Despite the positive developments, XRP's price has recently experienced a downturn, mirroring broader market trends influenced by geopolitical tensions. As of Wednesday, XRP was trading at $0.60, down 2.7%.
