In a groundbreaking move, cryptocurrency index fund manager Bit by bit Asset Management submitted an application XRP XRP/USD exchange-traded fund (ETF), for the first time in the US market.
What happened: Bit by bit sent the ETF presentation Monday to the Delaware Department of State's Division of Corporations. The filing was made under the entity name Bitwise XRP ETF, with CSC Delaware Trust Company as registered agent.
This is usually the first step in filing and listing an ETF, as a similar notice has been seen before for BlackRock's iShares Bitcoin Trust ETF will go and iShares Ethereum Trust ETF ETHA.
Bitwise did not immediately respond to Benzinga's request for comment, although The Block confirmed that the filing was legitimate, citing the company's chief investment officer Matthew Hougan.
See also: Arthur Hayes cites 'money printing' as key factor in Bitcoin becoming 'best-performing asset' in history
Earlier this year, the SEC approved several spot Bitcoin ETFs from companies like BlackRock, gray scaleand Fidelity, as well as eight Ethereum ETFs. Grayscale has also launched an XRP “closed-end” fund for accredited investors.
Why is it important: Development comes even as Ripple LabsThe blockchain company that uses XRP for its operations is engaged in a legal battle with the SEC over the sale of the token.
Ripple scored a notable victory in its protracted legal battle with the SEC last year, when a US district judge ruled that the sale of XRP on public exchanges does not constitute unregistered securities offerings. The deadline for the SEC to appeal the ruling is set for October 7.
price action: At the time of writing, XRP was trading at $0.603, down 2.67% in the last 24 hours, according to Benzinga Pro data.
Photo courtesy: Michaela Jilkova on Shutterstock.com
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