The introduction of cryptocurrency ETFs in the U.S. has proven extremely popular, amassing billions in investments quickly. Building on this momentum, Bitwise is seeking to launch an XRP ETF, capitalizing on its potential to join the ranks of Bitcoin and Ethereum ETFs approved earlier this year by the Securities and Exchange Commission (SEC). This move is confirmed by a legitimate application filed in Delaware.
Understanding ETFs in Cryptocurrency
Exchange-Traded Funds (ETFs) are investment tools that trade on stock exchanges, providing investors with access to an underlying asset without the need to own it directly. For example, a Bitcoin ETF lets investors gain exposure to Bitcoin's price movements without buying or storing Bitcoin themselves.
Bitwise's Ambitious Move
Based in San Francisco, California, Bitwise is a renowned crypto asset manager known for various investment funds. Despite confirming the filing, Bitwise has withheld further comments on a fund still in its filing phase.
The Complexity of XRP
XRP is a digital currency initially created by the founders of Ripple, a company focused on making cross-border payments faster. XRP and Ripple now operate independently. However, the legality surrounding XRP is complex, mainly due to a significant lawsuit by the SEC in 2020, accusing Ripple of selling $1.3 billion in unregistered securities via XRP.
Legal Battles and Market Impact
In a notable 2022 court decision, Ripple achieved a partial victory when the judge ruled that XRP's retail sales were not securities. However, institutional sales contracts worth $728 million were classified as unregistered securities. This ruling was seen as a significant win for the crypto sphere, sparking optimism about the broader acceptance of crypto assets.
Current Market Status
Presently, XRP is valued at $0.61, marking a 3% increase over the past week. This growth reflects optimism in the market, potentially signaling positive reception towards the anticipated XRP ETF.
