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- Bitwise XRP ETF uses the cash-create technique or exchanges cash for shares.
- The crypto asset manager was an early entrant in the Bitcoin spot ETF market in January.
Bitwise, a cryptocurrency asset manager, has formally applied to the US Securities and Exchange Commission to become the first spot XRP exchange-traded fund (ETF). The filing states that, after the Bitwise XRP ETF receives SEC clearance, it will provide investors access to the value of the XRP owned by the trust, less the costs of the trust’s operations and other liabilities.
Bitwise CEO Hunter Horsley said in a press statement announcing the announcement on Oct. 2 that the company believes blockchains will bring about new monetary assets that are not tied to politics. And will have permissionless uses in the 21st century.
The CEO added:
“It’s why for the past seven years we’ve helped investors access the opportunities in the space, and we’re excited to continue that work with our filing for a Bitwise XRP ETP.
Awaiting Regulatory Clearance
Additionally, Bitwise said that the Bitwise XRP ETF uses the cash-create technique or exchanges cash for the creation and redemption of shares. According to the filing, the trust would inform shareholders if it manages to get the required regulatory clearances to permit creations and redemptions in kind.
A formal filing with the SEC was expected to follow Bitwise’s Oct. 2 filing for an XRP ETF Trust in Delaware, which was followed soon after by its ETF filing. Bitwise was an early entrant in the Bitcoin spot ETF market in January, before applying for an XRP ETF.
Among the companies that began trading spot Ethereum ETFs in July was Bitwise. Moreover, Bitwise has not yet registered for a spot Solana ETF, whereas other crypto ETF issuers such as VanEck have.
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