Bitwise Files Groundbreaking Form S-1 for XRP ETF with SEC Approval Pending
In a significant development for the cryptocurrency market, asset management firm Bitwise has officially submitted its Form S-1 to the United States Securities and Exchange Commission (SEC) for the first spot XRP exchange-traded fund (ETF). If approved, the Bitwise XRP ETF will allow investors to gain exposure to the value of XRP directly held by the trust, minus operational expenses and other liabilities.
Bitwise CEO Hunter Horsley expressed his enthusiasm for the filing, stating, “At Bitwise, we believe blockchains will usher in new, apolitical monetary assets and permissionless applications for the 21st century.” He emphasized the firm’s commitment to helping investors navigate the crypto landscape over the past seven years and looks forward to expanding these opportunities with the XRP ETF.
Custody Arrangements and Operational Details
The filing outlines that XRP holdings will be securely stored with the Coinbase Custody Trust Company, maintaining consistency with Bitwise's approach for other cryptocurrency ETFs. It’s important to note that while the custodian is not insured by the Federal Deposit Insurance Corporation (FDIC), it does carry insurance from private carriers.
The ETF will create and redeem shares using the cash-create method or cash exchanges. Should regulatory approvals allow for in-kind transactions, Bitwise will inform shareholders accordingly.
This latest filing follows an earlier submission for an XRP ETF Trust in Delaware, which hinted that a formal SEC filing would soon follow.
Bitwise's ETF Experience
Bitwise is no stranger to the ETF landscape. The firm made headlines earlier this year by launching one of the first spot Bitcoin ETFs and has also initiated trading for spot Ether ETFs. While other firms, such as VanEck, have filed for spot Solana ETFs, Bitwise has not yet pursued that route.
Market Reactions and Predictions
Industry experts are closely watching the Bitwise XRP ETF filing. Nate Geraci, president of the ETF Store, described the development as “highly noteworthy.” He speculated that this filing might act as a “call option” linked to the upcoming November election but reassured that Bitwise’s approach is strategic and thoughtful.
Further adding to the conversation, journalist Eleanor Terrett reported that Canary Capital, a crypto-focused investment firm, has also filed for an XRP ETF in Delaware, suggesting a growing interest in this asset class.
Ripple’s Licensing Progress
In a related development, Ripple, the company behind XRP, announced on October 1 that it has received in-principle licensing approval from the Dubai Financial Services Authority. This approval will enable Ripple to establish operations in Dubai and offer cross-border payment services for both fiat and digital assets within the Dubai International Financial Center (DIFC).
As Ripple works toward final approval, it must meet various prerequisites to operate fully in the UAE, reflecting the increasing regulatory engagement and opportunities for cryptocurrency firms in the region.
Conclusion
The filing of Bitwise’s Form S-1 for an XRP ETF represents a significant milestone in the realm of cryptocurrency investment products. As regulatory scrutiny intensifies, this development could pave the way for greater adoption and acceptance of digital assets in traditional investment markets. Investors and industry stakeholders will be closely watching the SEC's response and its potential impact on the future of XRP and cryptocurrency ETFs.