Digital asset manager Bitwise has submitted an application to launch a spot exchange-traded fund based on XRP.
?SCOOP: Crypto asset manager @BitwiseInvest has filed in the state of Delaware for an $XRP ETF.
More details to come. Stay tuned. ? pic.twitter.com/2q7zDj7aYm
— Eleanor Terrett (@EleanorTerrett) October 1, 2024
The firm promised to provide further details later.
The announcement did not lead to a significant reaction in XRP’s price. Over the past day, the asset has decreased by 3.3%, amid a decline in competitors within the top 10 by market capitalization, ranging from 3.4% to 8.2%.
Since December 2020, a legal battle has been ongoing between the SEC and Ripple regarding the status of XRP.
In July 2023, the fintech firm achieved a partial victory. The court ruled that programmatic sales and other distributions of the token do not constitute an offer and sale of investment contracts.
At that time, the SEC attempted to challenge the decision, but the court dismissed the Commission’s interlocutory appeal. The agency still has the opportunity to make another attempt. The company’s chief legal officer, Stuart Alderoty, expressed confidence that this would not change XRP’s status.
On August 7, 2024, Judge Analisa Torres fined Ripple $125 million in the case with the SEC. Initially, the agency sought $2 billion.
In September, digital asset manager Grayscale Investments announced the launch of a closed-end fund based on XRP.