cryptopolitan.com
Asset management firm Bitwise filed Form S-1 for XRP ETP with the U.S. Securities and Exchange Commission (SEC) on October 2nd. The filing indicates that once approved, the proposed fund will hold XRP on its own.
Bitewise CEO Hunter Horsley announced on October 2nd that Bitewise had filed an S-1 for a Bitwise XRP ETP. The executive stated that XRP had been an enduring digital asset for more than a decade, prompting interest among investors. Horsley said that Bitwise has been working to pioneer investment vehicles that open doors to emerging opportunities in the crypto market.
On-chain XRP activity increases after ETP filings
According to Santiment, the surge in XRP’s transaction volume could be due to traders reacting to the news and institutions accumulating digital assets. Santiment cautioned traders that such high volumes create intense volatility in the markets, causing potential short-term corrections.
On-chain metrics reveal XRP’s 30-day average returns for traders stand at -9.2%, the lowest figure in two months. Notably, whale transaction count exceeded the 6-month high as Santiment isolated 145 whale transactions worth more than $1 million on October 1st.
Bitwise initially filed an XRP exchange-traded fund ETF on Tuesday. On Wednesday, the asset management firm announced filing the ETP instead. ETPs differ from ETFs as they are a broader classification that offers room for regulatory flexibility. Both ETFs and ETPs offer products that track the price of XRP, but an ETP is best suited for Bitwise at the time, according to Santiment.
XRP ETP application causes a surge in social activities
The ETP filing sparked a wave of social activities around XRP. Santiment revealed the news caused initial excitement and a huge social volume spike. Santiment’s analysis indicates a social volume spike surrounding XRP happened on August 7th when rumors about an XRP ETF approval resurfaced online.
XRP rebounded after the initial filling alongside the bullish sentiment on the broader crypto market. On-chain activity has also increased as a result of the news. Santiment data reveals that XRP transaction volume spiked to an eight-month high of $2.39 billion immediately after the filings.
XRP currently ranks seventh among the largest crypto assets, with a market cap of $30.1 billion, according to CoinMarketCap. Despite the fillings, XRP’s price has been down 11.36% in the last 24 hours and has dipped by 9% in the last seven days.
The ETP application comes amid Ripple receiving an in-principle license approval in Dubai. The company applied for the license in a bid to offer cross-border payments in the UAE.