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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.