Bit files for XRP ETF via Delaware trust

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Crypto asset manager Bitwise has taken a step towards launching an XRP ETF. According to a filing with the Delaware Division of Corporations, the company has established a trust that could serve as the foundation for a potential XRP ETF.

As of this writing, no corresponding filing has appeared in the SEC’s EDGAR database, which is the typical repository for official ETF proposals.

This action follows a pattern seen in the crypto ETF sector, where asset managers create trusts before seeking SEC approval for an exchange-traded product.

The filing drew attention in the crypto community, particularly among those interested in XRP, the digital asset associated with Ripple. XRP has been a subject of regulatory scrutiny in recent years.

The path to an approved XRP ETF can be challenging. The SEC has been cautious about crypto-based ETFs, only recently approving Bitcoin and Ethereum ETFs after a lengthy process of regulatory filings and discussions.

Bitwise’s move follows the launch of Bitcoin ETFs by firms such as BlackRock and Fidelity earlier this year. These approvals marked a shift in the regulatory landscape for crypto investment products.

A potential XRP ETF would represent another development in the integration of digital assets into traditional finance. However, regulatory approval is not assured and the process could be lengthy.

As the crypto market continues to evolve, Bitwise’s filing of an XRP trust through Delaware is a development that market participants are watching. It could lead to new investment vehicles for XRP, a cryptocurrency that has been the subject of ongoing market and regulatory debate.

Last month, Grayscale introduced an XRP trust in the US aimed at accredited investors, potentially paving the way for an ETF conversion amid Ripple’s ongoing legal battles with the SEC.

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