Bitwise seeks approval for first spot XRP ETF despite regulatory uncertainty Bitwise seeks approval for first spot XRP ETF despite regulatory uncertainty
Market observers are uncertain if the SEC would approve additional crypto-focused ETFs soon.
2 min read
Updated: Oct. 2, 2024 at 5:29 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitwise has filed an application with the United States Securities and Exchange Commission (SEC) for the first spot XRP exchange-traded fund (ETF), according to an Oct. 2 statement.
The proposed ETF aims to directly hold XRP. It is currently pending the effectiveness of its Form S-1 registration and the approval of Form 19b-4.
Bitwise’s XRP ETF would build on the firm’s success with other crypto-based funds, including spot Bitcoin and Ethereum ETFs launched earlier this year.
Why XRP ETF?
Bitwise said it chose XRP due to its ability to facilitate cross-border payments and its strong ecosystem. The firm highlighted that the XRP Ledger (XRPL) supports institutional participation in DeFi and offers compatibility with the Ethereum Virtual Machine (EVM).
The company also highlighted XRP’s large number of active wallets and its status as one of the world’s leading crypto.
Bitwise CEO Hunter Horsley emphasized the firm’s belief that blockchains will create new, apolitical monetary assets and permissionless applications for the 21st century. He added:
“For the past seven years weโve helped investors access the opportunities in the space, and weโre excited to continue that work with our filing for a Bitwise XRP ETP.”
Ripple CEO Brad Garlinghouse also weighed in, stating that the application signals the growing confidence of traditional financial institutions in XRP. He stated:
“This move underscores the growing trust & integration of digital assets like XRP into traditional finance, marking the continued adoption and maturation of the crypto market. I sense this is just the beginning.”
Notably, this development comes less than a month after Grayscale Investments launched a new XRP-focused crypto investment trust.
Will it be approved?
Market analysts have expressed doubts about the possibility of the XRP ETF’s approval under the current US regulatory environment.
Additionally, Ripple’s ongoing legal battle with the SEC further complicates the approval process. Galaxy Digital’s Head of Research Alex Thorn said:
“SEC has until next week (Oct. 7) to appeal Judge Torresโ July 2023 ruling (which held that secondary sales of XRP through exchanges were not securities) likelihood of this ETF filing succeeding drops to near zero if they do appeal (iโll be very surprised if they donโt appeal).”
Mentioned in this article
XRP 
Bitcoin 
Ethereum 
Bitwise 
Grayscale Investments 
Bitwise Bitcoin ETF Bitwise Ethereum Fund 
Brad Garlinghouse 
Hunter Horsley Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Theย XRP Ledgerย is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Bitcoin
$98,153.80
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,136.85
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Bitwise
Bitwise Asset Management pioneered the first cryptocurrency index fund and is the leading provider of rules-based exposure to the cryptoasset space..
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
The Bitwise Bitcoin ETF (BITB) is a newly launched exchange-traded fund that provides investors with exposure to Bitcoin.
The Bitwise Ethereum Fund (ETHW) by Bitwise is a professionally managed investment product that provides investors with direct exposure to Ethereum (ETH).
Brad Garlinghouse stands at the forefront of financial technology as the CEO of Ripple.
Hunter Horsley, the Co-founder and CEO of Bitwise Asset Management, brings a wealth of experience from his tenure as a Facebook product manager.