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Asset management firm Bitwise is seeking approval from the U.S. Securities and Exchange Commission (SEC) to launch a spot XRP exchange-traded fund (ETF), offering investors direct exposure to XRP through traditional brokerage accounts. “XRP has been an enduring crypto asset that many investors want exposure to,” said the CEO of Bitwise.
Bitwise Seeks SEC Approval for Spot XRP ETF
Bitwise Asset Management announced on Wednesday that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) for “Bitwise XRP ETF,” a spot XRP exchange-traded fund (ETF) designed to offer investors direct exposure to XRP. “The proposed fund would hold XRP directly,” the company stated. The filing came after a submission to the Delaware Division of Corporations the day before.
Hunter Horsley, Bitwise’s CEO, shared on social media platform X:
Today we filed an S-1 for a Bitwise XRP ETP! For more than a decade, XRP has been an enduring crypto asset that many investors want exposure to.
“Over the past 6+ years, we’ve worked to pioneer investment vehicles that provide access to the emerging opportunities in the space. We’re excited to continue that work,” the executive added.
The proposed ETF plans to store XRP with Coinbase Custody Trust Company LLC, a New York-based limited liability trust company that offers digital asset custody services. The filing states: “The net assets of the trust and its shares are valued on a daily basis with reference to the pricing benchmark, a standardized reference rate published by CF Benchmarks Ltd. (the ‘Benchmark Provider’) that is designed to reflect the performance of XRP in U.S. dollars.”
This exchange-traded product (ETP) aims to provide investors with “the opportunity to access the market for XRP through a traditional brokerage account without the potential barriers to entry or risks involved with acquiring and holding XRP directly,” Bitwise described.
The asset management firm clarified:
The launch of the Bitwise XRP ETP is pending effectiveness of the Form S-1 as well as approval of a Form 19b-4 filing.
XRP is central to the ongoing Ripple lawsuit with the SEC. The regulator has until Oct. 7 to appeal District Judge Analisa Torres’ ruling, which classified XRP’s programmatic sales as non-securities, marking a significant win for Ripple. Some firmly believe that the SEC will appeal.
What do you think about Bitwise’s plan to offer a spot XRP ETF to investors? Let us know in the comments section below.