An application for a Bitwise XRP exchange-traded fund (ETF) has appeared on the State of Delaware’s Division of Corporations website. Cointelegraph independently confirmed the filing with a Bitwise spokesperson.
According to the filing, the Bitwise XRP ETF was incorporated on Sept. 30, 2024. The registered agent was listed as CSC Delaware Trust Company, which is headquartered in Wilmington, Delaware.
The filing in Delaware does not necessarily mean that a registration application with the Securities and Exchange Commission (SEC) is imminent. This step could be part of early-stage preparation, and it’s possible that no formal filing with the SEC could take months.
The application comes just a few months after Ripple’s CEO, Brad Garlinghouse, hinted about the upcoming financial product, describing an XRP ETF as “inevitable” following the launch of Bitcoin and Ether ETFs in the United States.
Bitwise’s XRP ETF filing. Source: Delaware’s Department of State
The approval of an XRP ETF would allow institutional investors to gain exposure to cryptocurrency through a regulated investment vehicle, potentially boosting liquidity and token adoption.
Rumors have circulated about an XRP ETF launch in recent months. In November 2023, the price of XRP surged by 12% after a fake filing for a “BlackRock iShares XRP Trust” in Delaware sparked speculation over a potential XRP ETF.
The application was later denied by BlackRock, and Delaware prosecutors are now looking into the deceptive filing.
SEC vs. XRP
The application in Delaware follows years of legal disputes between the SEC and token issuer Ripple Labs. In 2020, the SEC sued Ripple, alleging that its sale of XRP constituted an unregistered securities offering.
Nearly three years later, in July 2023, Judge Analisa Torres ruled that XRP is not a security when sold on public exchanges, providing Ripple with a partial victory. However, the ruling indicated that institutional sales of XRP could qualify as securities offerings.
The latest development in the case occurred in September 2024 when both parties jointly 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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