- Bitwise Asset Management has initiated the process to establish a Delaware statutory trust. They aim to launch an ETF linked to XRP legally ahead of time.
- Ripple CEO Brad Garlinghouse anticipates this move will encourage other asset managers to introduce similar XRP ETFs.
- Garlinghouse believes that the launch of XRP ETFs is inevitable. He highlights the increasing acceptance of digital assets in traditional finance.
Bitwise Asset Management has filed for a Delaware statutory trust, moving closer to launching an ETF linked to XRP. This legally recognized business trust was registered on September 30.
The registration was done with CSC Delaware Trust Company in Wilmington, Delaware, as the agent.
This development came after Ripple CEO Brad Garlinghouse’s comments, which he had given a few months ago. In that comment, he described an XRP ETF filing as “inevitable” after the US launch of Bitcoin and Ether ETFs.
Why would approval of the XRP ETF filing be optimistic? It would enable institutional investors to gain exposure to the cryptocurrency via a regulated investment vehicle. This will likely assist in enhancing its liquidity and adoption.
Ripple CEO believes that XRP’s adoption in traditional finance is accelerating and expects other asset managers to follow Bitwise’s lead.
This move underscores the growing trust & integration of digital assets like XRP into traditional finance, marking the continued adoption and maturation of the crypto market. I sense this is just the beginning.
He views the launch of an XRP ETF as not only feasible but also inevitable, given the growing interest in digital assets.
Garlinghouse Finds This Appeal By SEC As Misguided And Infuriating
The Delaware registration was just the first step. The next was an application to the United States Securities and Exchange Commission (SEC).
Many had expected the formal SEC filing to take months. However, the U.S. SEC approved the initial registration of the Bitwise XRP ETF filing within two days, according to an X post by the @XRP army.
This swift approval raised questions about whether the U.S. SEC accidentally pressed the ‘ok’ button or did it knowingly. Especially since they also appealed the Ripple lawsuit shortly afterward.
To this fact, the Ripple CEO Brad Garlinghouse criticized SEC Chair Gary Gensler and the SEC on X. He exhibited that if they were rational, they would have accepted their loss and moved on, as Ripple and the rule of law had already prevailed.
Ripple CEO Garlinghouse believes that the SEC’s actions have not protected investors. In contrast, they have damaged the agency’s reputation and credibility.
“While we’ll fight in court for as long as we need, let’s be clear: XRP’s status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal.
(Remember, when the SEC tried unsuccessfully to file an “interlocutory appeal” they made clear they had no intention of challenging XRP’s status as a non-security.)”
Additionally, he vowed to fight until the end. He asserted that XRP is a non-security asset by law and expressed frustration with the appeal. This development marks a new chapter in the lawsuit and the XRP ETF filing saga.
Despite Appeal More XRP ETF Filings Are Anticipated
Bitwise‘s application to the SEC is a pivotal moment for XRP in the financial market. Following the filing of the S-1 form, institutional investors have recognized XRP as a commodity rather than a security.
This development follows Judge Analisa Torres’ ruling earlier this year, which naturally classified XRP as not a security. Ripple CEO anticipates that other asset managers, like Grayscale, might soon follow Bitwise’s lead.
The growing interest in XRP ETFs indicated that more institutional investors are venturing into the digital assets space. They are gaining acceptance in traditional finance.
One More Name Was Onboard Toward XRP ETF Filing
Canary Capital, alongside Bitwise, took part for an XRP ETF filing with the Delaware Division of Corporations. According to the Delaware Division of Corporations website, Canary Capital appears to have been the first to file.
This move highlighted Delaware’s business-friendly environment and favorable taxation policies for financial services firms.
Grayscale might also enter the market, especially after establishing its Grayscale XRP Trust. By converting this trust into an ETF, Grayscale could significantly boost XRP’s recognition in traditional finance.
This trend showed that institutional investors are increasingly viewing digital assets like XRP as legitimate commodities.
Would A Complete Approval Be Delayed AMid Continuous Legal Challenges
Despite the growing momentum for XRP ETFs, the SEC’s position remains uncertain, and full approval could take some time. The crypto community remains cautious, as any shift in the legal landscape could hinder progress.
This uncertainty is one reason why XRP’s price continues to struggle despite positive developments.
However, Ripple CEO Brad Garlinghouse remains optimistic about the future of XRP ETFs. He pointed out that the number of asset managers filing with the U.S. SEC is growing. It reflects growing confidence in the asset’s legal standing.
Bitwise’s filing is a prime example; other companies are expected to follow suit in the coming months.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
