Bitwise Files for XRP ETF Following Bitcoin, Ethereum Approvals
Bitwise Asset Management has filed an application for an XRP-based exchange-traded fund (ETF) in Delaware, following recent SEC approvals for Bitcoin and Ethereum ETFs. This comes amid Ripple’s ongoing legal battles with the SEC over XRP’s classification. XRP is currently trading at $0.61, up by 3% over the past week. Bitwise has confirmed the application’s legitimacy but has declined to comment further at this stage.
Bitwise Asset Management has confirmed the legitimacy of its application for an exchange-traded fund (ETF) based on XRP, the seventh-largest cryptocurrency by market capitalization. This announcement follows the recent approvals by the U.S. Securities and Exchange Commission (SEC) of various Bitcoin and Ethereum ETFs. Exchange-traded funds are investment vehicles that allow investors to gain exposure to underlying assets through trades on stock exchanges. This year, the U.S. has witnessed a significant influx of capital into newly approved crypto ETFs, totaling billions of dollars within a short timeframe. Based in San Francisco, Bitwise manages a diverse range of cryptocurrency investment funds. Although the company has validated the existence of the XRP ETF filing, it refrained from providing further comments on the matter, citing the application is still in the filing stage. XRP was originally created by Ripple, a financial technology firm dedicated to enhancing the efficiency of cross-border transactions. However, Ripple and XRP have since diverged in their operational frameworks. The prospect of an SEC approval for the XRP ETF remains uncertain due to the ongoing legal challenges faced by Ripple, particularly stemming from a $1.3 billion lawsuit filed by the SEC in 2020. This lawsuit accused Ripple of selling unregistered securities in the form of XRP to raise capital. In a notable development last year, Ripple achieved a partial victory when a judge ruled that the programmatic sales of XRP to retail investors did not classify as securities transactions. Conversely, the court found that $728 million in contracts for institutional sales did amount to unregistered securities. This ruling has reverberated throughout the industry, being viewed as a significant triumph for the cryptocurrency sector. Currently, XRP is trading at $0.61, reflecting a 3% increase in value over the past week. Reporting was also contributed by André Beganski, with editing by Andrew Hayward. This article has been updated to include additional details after its initial publication.
The article discusses the recent application by Bitwise Asset Management for an XRP-based exchange-traded fund (ETF), set against the backdrop of increasing regulatory acceptance and approval of cryptocurrency ETFs by the SEC. It highlights the potential market impact of the application following the backdrop of an ongoing legal battle between Ripple and the SEC over XRP’s status as a security. Furthermore, it provides context on the performance of XRP in the market and its historical conflicts with the SEC.
Bitwise’s application for an XRP ETF represents a significant step in the cryptocurrency investment landscape, particularly following the SEC’s recent approvals of Bitcoin and Ethereum ETFs. The outcome of this application remains uncertain, reflecting the complex regulatory environment for cryptocurrencies. The partial legal victory for Ripple has set a precedent that may influence the SEC’s decision regarding the approval of the XRP ETF. With XRP currently trading at $0.61, investor interest is likely to remain high as developments unfold.
Original Source: decrypt.co
Post Comment