Asset Manager Bitwise Seeks to Register XRP ETF

On October 1st, Bitwise, a renowned asset management company, registered the establishment of an investment fund entity in Delaware, USA. Notably, the name of the fund hinted at the intention to create an investment product for XRP. While a company spokesperson confirmed the information, they have kept specific details under wraps.

In the financial world, registering a legal entity is seen as the first step taken by Wall Street “giants” before officially submitting an application to the U.S. Securities and Exchange Commission (SEC) for approval. This is a familiar process, previously applied to Bitcoin and Ethereum ETFs.

Bitwise is no stranger to this field. Currently, the company operates two listed products on U.S. stock exchanges: a Bitcoin ETF and an Ethereum ETF. Their Bitcoin ETF holds 2,103 BTC (equivalent to $129 million), while the Ethereum ETF owns 325.8 ETH (worth approximately $800,000).

This move by Bitwise comes shortly after Ripple, the company behind XRP, concluded its legal battle with the SEC. Ripple agreed to pay a $125 million fine to resolve allegations that XRP was an unregistered security.

However, investors should remain cautious as this is not the first time there has been news about an XRP ETF registration in Delaware. In November 2023, a similar case emerged but was later revealed to be a fraudulent attempt to manipulate XRP’s price.

Interestingly, the market seemed relatively indifferent to this news. XRP’s price showed little movement, partly due to the overall market correction on the evening of October 1st, triggered by political tensions between Iran and Israel.

Aside from XRP, Solana (SOL) has also attracted interest from several Wall Street “heavyweights” for potential ETF creation. However, financial experts believe that both XRP and SOL are unlikely to see ETFs launched by 2025. The main reasons include the lack of futures products for these cryptocurrencies and the SEC’s unfavorable stance toward crypto under the leadership of Chairman Gary Gensler.