Bitwise Asset Management, a leading crypto index fund manager, has officially filed for a spot XRP exchange-traded fund (ETF) with the Delaware Department of State. The filing, confirmed by Bitwise Chief Investment Officer Matthew Hougan, lists CSC Delaware Trust Company as the registered agent. This move aims to broaden investor access to XRP, despite ongoing regulatory challenges.

Ripple and the SEC Legal Battle

Since December 2020, Ripple has been in a legal battle with the U.S. Securities and Exchange Commission (SEC), which accused the company of raising $1.3 billion through unregistered sales of XRP. The legal uncertainty surrounding XRP continues to cast a shadow over the success of the ETF filing.

Alex Thorn, head of research at Galaxy Digital, noted that the SEC could appeal Judge Torres’ July 2023 ruling, which.. determined that secondary sales of XRP do not qualify as securities. He warned that such an appeal, expected by October 7, could drastically reduce the chances of ETF approval.

Expert Views on the Filing

Eric Balchunas, senior ETF analyst at Bloomberg, referred to the XRP ETF filing as a “speculative bet.” Comparing it to a “cheap call option on a Trump victory,” Balchunas suggested that a change in political leadership could influence the fate of such filings. He indicated that if Vice President Harris were to win, the ETF’s chances of approval would diminish.

Growing Institutional Interest

Despite the regulatory headwinds, industry analysts believe that an XRP ETF is inevitable. Ripple CEO Brad Garlinghouse has expressed confidence in the development of such products. Additionally, Grayscale Investments recently announced plans for an XRP closed-end fund for accredited investors, signaling increasing institutional interest.