Bitwise Asset Management filed an application for a Delaware statutory trust on September 30th, moving closer to launching an ETF linked to XRP. Bitwise is a reputable crypto-only company known for its sound choices and thinking.
Ripple CEO Brad Garlinghouse recently stated that he believes the adoption of XRP in TradFi continues to pick up pace. He thinks the Bitwise filing will lead other asset managers to follow the same path.
In Garlinghouse’s view, the launch of an XRP ETF is quite feasible and perhaps inevitable, especially given the trend of emerging markets for digital assets.
Garlinghouse Anticipates More XRP ETF Filings
The application made by Bitwise with the United States Securities and Exchange Commission (SEC) is significant for XRP’s position in the financial market. After the S-1 form was filed, all institutional investors accepted that XRP is a commodity and not a security.
This comes in the wake of Judge Analisa Torres’ earlier this year ruling that XRP is not a security naturally. According to Garlinghouse, other asset managers, such as Grayscale, may also join Bitwise in the near future.
The increased demand for XRP ETFs shows that more institutional investors are entering the digital assets space and are being accepted in the TradFi world.
Canary Capital Steps Towards XRP ETF Filing
Besides Bitwise, Canary Capital filed for an XRP ETF with the Delaware Division of Corporations. However, Canary Capital has not submitted an official application with the SEC to this effect. The move by the asset managers to register in Delaware underlines the state’s business-friendly bureaucracy and taxation policy for financial services firms.
Another company that may join the market is Grayscale, especially after creating its Grayscale XRP Trust. Thus, by transforming this trust into an ETF, Grayscale could well accelerate the recognition of XRP in the traditional market. The trend indicates that more and more institutional investors are recognizing digital assets such as XRP as actual commodities.
Legal Challenges Could Delay Approval
Even as the push towards XRP ETFs gathers pace, the SEC’s stance is still unclear. The SEC has appealed the recent court ruling on the status of XRP, and it may take time before approval goes through. The crypto community is still somewhat wary, as any change in the legal stance could hamper the growth of such advancements.
Nonetheless, Garlinghouse remains quite hopeful about the future of XRP ETFs. He noted that more and more asset managers are filing with the SEC, which demonstrates enhanced confidence in the asset’s legal tenderness. Such is the case with Bitwise’s filing, with other companies expected to do the same in the coming months.
