Bitwise Asset Management has surprised the cryptocurrency market with a recent filing in Delaware for a Bitwise XRP ETF. This unexpected move comes amidst growing speculation about the potential for XRP-based exchange-traded funds (ETFs) in the United States.
The Delaware filing, made public on September 30, marks a significant step for Bitwise, a reputable crypto-native fund firm known for its strategic approach. The choice of Delaware as the jurisdiction for the filing aligns with the state’s reputation for business-friendly regulations and tax policies, making it a popular destination for corporate entities.
A Strategic Bet
While the XRP ETF is not widely considered the most likely cryptoasset to secure regulatory approval for a US ETF, Bitwise’s decision to pursue this application demonstrates its confidence in the potential for XRP-based ETFs. The company’s recent acquisition of a European crypto ETP issuer and its CEO Matt Hougan’s public optimism about new ETF approvals further solidify this belief.
Ripple’s Optimism
Ripple’s executives share Bitwise’s bullish outlook on the eventual approval of an XRP ETF. Ripple CEO Brad Garlinghouse has expressed confidence that it is merely a matter of time before such a product becomes a reality. He has even predicted the approval of ETFs for Solana and Cardano in the future.
Also Read: Ripple Unlocks 1 Billion XRP Worth $621M – 80% Set For Re-Lock As Price Dips 4%
Regulatory Hurdles
Despite the growing enthusiasm for XRP ETFs, regulatory hurdles remain a significant challenge. The Securities and Exchange Commission (SEC) has been cautious in its approach to crypto-related products, and the approval of an XRP ETF would represent a major milestone.
The SEC’s reaction to Bitwise’s application remains uncertain, but it is undoubtedly a noteworthy development that could have far-reaching implications for the cryptocurrency market. If approved, the Bitwise XRP ETF would be a significant step forward in the mainstream adoption of cryptocurrencies.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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