Bitwise has registered a trust company to launch an XRP fund

What’s new? Cryptocurrency investment company Bitwise has begun preparations to create an exchange-traded fund (ETF) based on the XRP token with a capitalization of $33,4 billion by fintech company Ripple. Thus, Bitwise has already registered a trust company in the state of Delaware, which is the first step toward applying for the listing of ETF shares. Bitwise and other asset managers, including BlackRock and Fidelity, did the same before launching bitcoin and Ethereum-based spot ETFs.

Material by CoinDesk

What else is known? Spot bitcoin funds were approved in the United States on January 11, with trading in ETH ETF shares beginning on July 23. Bitwise launched its BITB and ETHW funds on the New York Stock Exchange (NYSE). BITB is ranked fourth in fund inflows and fifth in assets under management (AUM) with $2,11 billion and $2,41 billion, respectively. ETHW ranks third in inflows and fifth in AUM with figures of $325,78 million and $249,17 million.

Following the launch of funds based on major cryptocurrencies, traders expected issuers to start bringing ETFs based on major altcoins, including XRP and SOL, to the market as well. However, last month, the US Securities and Exchange Commission (SEC) rejected applications to launch SOL ETFs, citing concerns over the unspecified status of the asset.

At the same time, the XRP issuer has almost ended its years-long legal battle with the SEC, which called the initial sale of the asset an unregistered offering of securities. The court partially sided with the company last year, stating that the sale to retail investors was not a violation.

The SEC was going to fine Ripple $2 billion for institutional sales, but the defendant managed to challenge this amount in August this year and reduce it by 94%.

However, in September, the media reported that the regulator was considering appealing the verdict. Continued proceedings on the status of XRP could prevent the launch of exchange-traded products based on it.

Ripple itself, despite the proceedings, continues to expand its business. It recently obtained a license to operate in Dubai and also announced the release of its own RLUSD stablecoin.

Moreover, in September, it became known that crypto investment company Grayscale, which offers bitcoin and Ethereum-based spot ETH, was preparing to launch a closed XRP trust. Notably, its exchange-traded funds based on major cryptocurrencies were also initially launched as trusts, only to be converted to a different format after SEC approval. Probably, the company wants to follow the same scenario in the case of XRP.