Bitwise’s Possible XRP ETF Filling is a “Strategic” Political Move

Bitwise is reportedly preparing to file for an XRP exchange-traded fund (ETF) with Delaware’s Department of State’s Division of Corporations.

According to Nate Geraci, a well-known cryptocurrency analyst, this move is a strategic political decision, likely timed to coincide with the upcoming U.S. elections in November 2024.

Geraci, who expressed these views in a recent X post, considers Bitwise a reputable firm, and the registration of a trust entity in Delaware adds weight to the possibility of an XRP ETF launch.

Bitwise positioning to file for XRP ETF is highly noteworthy IMO…

In short-term, this is likely call option on November election.

But Bitwise is highly credible crypto-native fund firm that doesn’t just throw stuff at wall.

That’s simply not in their DNA.

This is strategic.

— Nate Geraci (@NateGeraci) October 2, 2024

While the political timing might influence short-term reactions, Geraci believes that the trend toward wider adoption of cryptocurrency-based ETFs, including XRP, is “inevitable” in the long run. He also speculated that Bitwise’s strategy may include bundling XRP in an ETF as part of its broader goal to drive the “full tokenization” of the investment landscape.

Various media outlets have reported that the asset management firm recently established a trust through a filing with Delaware’s Division of Corporations, which could serve as the foundation for the XRP ETF. However, Bitwise has declined to comment on the development of the status of the application.

Meanwhile, the company have previously shown signs of optimism about launching another major cryptocurrency ETF.

Matt Hougan, Bitwise’s chief investment officer, stated in a June 2024 memo to investors that regulatory uncertainty has been the primary reason financial advisors have been hesitant to increase their exposure to cryptocurrencies. He believes clearer regulations could open up the $20 trillion financial advisory market to crypto investments, potentially making assets like XRP more attractive to institutional investors.

Also, this filing follows a series of cryptocurrency ETF approvals earlier this year, particularly for Bitcoin and Ethereum, signaling that the SEC may be more open to new crypto-based financial products.

Despite this positive development, XRP’s value has fluctuated, dropping by 6.71% in daily trading, though it currently trades at $0.58. The token has still shown strong performance over the past week, dropping only by 0.08% and rising an impressive 5.81% over the past month, according to data from CoinMarketCap.

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