KEY POINTS
- A Bitwise spokesperson confirmed that the filing 'is both legitimate and is linked' to the asset manager
- Ripple's Brad Garlinghouse previously projected that an $XRP, $SOL, and $ADA ETF are 'inevitable'
- Prominent crypto figure Nate Geraci said Bitwise's first-mover decision was 'highly noteworthy'
Bitwise Asset Management, one of the asset managers that has a spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded fund (ETF), has filed for an entity named Bitwise XRP ETF in Delaware, marking a significant move in emerging world of cryptocurrency ETFs.
XRP, the crypto token very closely associated with fintech giant Ripple, has consistently stayed on top lists of the largest cryptocurrencies by market value.
What We Know About the $XRP ETF Filing
The entity filing was made in the state of Delaware, and showed that the new entity was incorporated on Sept. 30. The entity type was labeled "general," and the entity kind designated as a "statutory trust." The XRP ETF's registered agent is the CSC Delaware Trust Company in Wilmington.
Notably, the filing of a trust entity marks the first step in applying to list and trade ETF shares. Bitwise and other spot BTC and ETH ETF issuers first filed for trust entities before the crypto ETFs moved forward with other steps toward processing at the U.S. Securities and Exchange Commission (SEC).
"We can confirm at this time that the registration for the entity in Delaware is both legitimate and is linked to Bitwise," a spokesperson for the asset manager told International Business Times in a statement. No further details about other future filings are available at this time, the spokesperson added.
Did Brad Garlinghouse Predict The 'Inevitable?'
The filing's confirmation came a few months after the Ripple CEO said that with the approval of Ethereum ETFs earlier this year, other crypto ETFs will inevitably follow.
"I think it's just a matter of time, and it's inevitable there's gonna be an XRP ETF, there's gonna be a Solana (SOL) ETF, there's gonna be a Cardano (ADA) ETF, and that's great," he said at the Consensus 2024 in Texas.
Garlinghouse did note that while spot Bitcoin and Ether ETFs may have paved the way for the rise of crypto ETFs, he expects a more strenuous regulatory approval process for other tokens after the world's top two largest cryptocurrencies.
$XRP's September Performance
Like all other crypto tokens, XRP has had its ups and downs. On the other hand, it did have a fairly good performance in September, even surging on Sept. 30. Data from CoinGecko shows that the token was up by over 3% in the last two weeks.
$XRP ETF Trends on X
The news sent the crypto community in a frenzy, making the topic trend on X (formerly Twitter). As of early Wednesday, the term "XRP ETF" is still a trending business topic on the platform.
Nate Geraci, the President of ETF Store, said Bitwise's early-mover decision "is highly noteworthy," adding that the asset management firm is a "highly credible crypto-native fund firm that just doesn't throw stuff at [the] wall."
Bitwise positioning to file for XRP ETF is highly noteworthy IMO...
— Nate Geraci (@NateGeraci) October 2, 2024
In short-term, this is likely call option on November election.
But Bitwise is highly credible crypto-native fund firm that doesn’t just throw stuff at wall.
That's simply not in their DNA.
This is strategic.
Geraci noted that while the decision may have been associated with the political atmosphere as the U.S. nears the presidential election, it still matters that Bitwise was an early adopter.
