A new application for a Bitwise XRP exchange-traded fund (ETF) has been spotted on the State of Division of Corporations website. This filing was made on the 30th of September, 2024 and the registered agent mentioned here is CSC Delaware Trust Company.
However, this Delaware application does not ensure that a formal registration with the Securities and Exchange Commission (SEC) will be done shortly. It may be a part of the preliminary work, and the actual filing may take several months more.
The application comes after Ripple CEO Brad Garlinghouse stated that an XRP ETF is “inevitable” especially after the approval of Bitcoin and Ether ETFs in the U.S. An XRP ETF if approved would offer institutional investors a regulated avenue for investing in cryptocurrencies which could increase the circulation of XRP.
The talk about an XRP ETF has been going on for months now. In November 2023, a fake filing for a “BlackRock iShares XRP Trust” made XRP rise by 12%, but BlackRock denied this application and Delaware prosecutors began investigating.
The application in Delaware follows the legal dispute between the SEC and Ripple Labs, a case that started in 2020 when the SEC claimed that Ripple sold XRP as a security without registration. However, in July 2023, the court ruled that XRP is not a security when sold on public exchanges. Though institutional sales of XRP can count as security offerings.
The case is still inactive as both parties requested a stay on the case’s final judgment pending the outcome of the SEC’s appeal. This stay would allow the court to pause further proceedings until the appeal is resolved.
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