Bitwise’s application for an XRP ETF to Delaware may be related to the lawsuit between Ripple and the SEC. Bloomberg ETF analyst Eric Balchunas believes that the application for these altcoins is basically as cheap as a Trump Call.
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ToggleBitwise Submits XRP ETF Application
According to Cointelegraph , an application for a Bitwise XRP exchange-traded fund (ETF) has appeared on the Delaware Division of Corporations website, and a Bitwise spokesperson confirmed the news.
In an interview in June, Ripple CEO Brad Garlinghouse expressed strong confidence in the viability of an XRP ETF, predicting it would happen in 2025.
The approval of the XRP ETF will allow institutional investors to gain exposure to the cryptocurrency through a regulated investment vehicle, potentially increasing liquidity and token adoption. However, Bitwise’s document was filed in Delaware instead of filing a registration application with the U.S. Securities and Exchange Commission (SEC). This step may be part of early preparations and may take several months before a formal SEC filing is made.
Bloomberg Analyst: As cheap as Trump Call
Bloomberg ETF analyst Eric Balchunas also expressed his opinion on this news: “You must have heard of the Fed Put, just like the Trump Call. XRP or Solana or any other altcoin. The applications are basically like cheap call options if Trump wins, because Gary Gensler will disappear, making anything possible. If Harris wins, there is no way these applications will be approved, and the "call options" will expire worthless. .
You've heard of the Fed Put. This is like the Trump Call.. filings for XRP or Solana or any other alt coins are basically like a cheap call option on a Trump win as Genz will be gone and anything's poss. Harris wins no way these get approved, and the “call” expires worthless. https://t.co/mkpCbqEuQ4
— Eric Balchunas (@EricBalchunas) October 1, 2024
Preparing for SEC litigation?
However, this application may be for the sake of legal proceedings between Ripple and the SEC. The ongoing legal war between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) that began in 2020 has reached a critical moment. The SEC must file a lawsuit next week ( October 7) before appealing against Judge Torres’ July 2023 ruling that secondary sales of XRP through exchanges did not constitute securities. In July, Ripple’s CEO also predicted that its lawsuit with the SEC was about to end. .
