As a seasoned researcher with years of experience navigating the complexities of the cryptocurrency market, I find myself intrigued by Bitwise Asset Management’s recent move to register a trust entity for an XRP ETF. While it’s essential to remember that this step doesn’t automatically mean an immediate SEC filing or approval, it does indicate a clear intent and strategic positioning for the future.
Bitwise Asset Management appears to be preparing to apply for an XRP Exchange-Traded Fund (ETF), hinted by their recent establishment of a trust company in Delaware, amid ongoing challenges with the Securities and Exchange Commission (SEC) regarding regulations.
Bitwise Registers Trust Entity
As an analyst, I’m sharing that Bitwise Asset Management has made a substantial stride towards launching a spot Exchange-Traded Fund (ETF) focused on XRP. The company has registered a trust entity in Delaware, a move confirmed by its CEO, Matthew Hougan. This action, while not guaranteeing an XRP ETF in the future, could be seen as a strong indication of Bitwise’s potential intent to file for such a product.
On September 30th, a trust was officially established, with CSC Delaware Trust Company designated as its agent based in Wilmington, Delaware. This registration can be found on the Delaware Division of Corporations’ website, but it doesn’t automatically mean that the trust will soon be filed with the U.S. Securities and Exchange Commission (SEC). The approval process could take several months since there are still regulatory obstacles to overcome.
Ripple‘s Legal Battle and XRP ETF Prospects
Bitwise’s registration occurs during the progression of Ripple’s legal dispute with the SEC, where the SEC has charged Ripple for amassing $1.3 billion through unregistered XRP transactions, categorizing XRP as a security. Nevertheless, after the agreement between Ripple Labs and the SEC, several in the crypto community speculate that the route to an XRP Exchange-Traded Fund (ETF) has become more apparent.
The agreement has fostered a surge of positivity among investors, who anticipate that the SEC will eventually greenlight XRP Exchange Traded Funds (ETFs). Given Bitwise’s current management of Bitcoin and Ethereum ETFs, it seems they are preparing to take advantage of XRP’s potential rise as the next significant cryptocurrency to be featured in a fund.
Industry Reactions
The registration follows remarks by Ripple’s CEO, Brad Garlinghouse, who had earlier referred to an XRP ETF as “inevitable.” Garlinghouse pointed out that the launch of Bitcoin and Ethereum ETFs in the American market might open doors for other cryptocurrency ETFs, such as XRP.
Although the court ruling regarding XRP has been settled, there remains ambiguity about the Securities and Exchange Commission’s (SEC) position on it. The SEC has until the end of this week to decide if they will challenge the Ripple verdict. If they do, it might postpone the advancement of XRP ETFs, causing potential approval deadlines to be pushed back even further. According to Garlinghouse, a reasonable timeframe for the first XRP ETF could be 2025, assuming the SEC does not pursue additional legal proceedings.
Broader Market Developments
As the focus stays on XRP, other potential players such as Solana (SOL) are also in the running for Exchange Traded Fund (ETF) endorsements. Some investment experts predict that Solana could be approved ahead of XRP, potentially pushing back XRP’s entry into the ETF market even further.
1) Several Bitcoin and Ethereum ETFs have already been given the green light by the SEC, with major companies like BlackRock, Grayscale, and Fidelity among them. Furthermore, Grayscale has unveiled its intention to create a “closed-end” fund focused on XRP, demonstrating ongoing enthusiasm for XRP despite the hurdles posed by regulatory issues.
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2024-10-02 16:04