Bitwise Files for XRP ETF with SEC Amid Ongoing Regulatory Uncertainty
The crypto asset manager aims to capitalize on XRP’s popularity as the SEC’s deadline to appeal a pivotal ruling in the Ripple case approaches.
Because Bitcoin
October 2, 2024
According to FOX Business, Bitwise has submitted an initial registration statement to the SEC to launch an XRP exchange-traded fund (ETF), becoming the first company to seek approval for a spot ETF that tracks the daily price of XRP. This filing follows Bitwise's recent spot bitcoin and ethereum ETFs and its acquisition of ETC Group, a major issuer of crypto products in Europe.
Despite this significant step, the SEC's approval of an XRP ETF is not guaranteed due to ongoing regulatory uncertainty. The SEC recently raised concerns about the regulatory status of Solana, resulting in some ETF applications being withdrawn. However, Bitwise believes that offering exposure to XRP is a valuable opportunity. CEO Hunter Horsley highlighted XRP’s recognition among mainstream investors.
In addition to Bitwise's filing, Canary Capital, a new crypto-focused firm founded by Steven McClurg, has also filed for an XRP ETF. The Canary XRP ETF was incorporated on September 24.
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The submission of Bitwise's Form S-1 begins a lengthy approval process that could take several months. The regulatory status of XRP, currently valued around 60 cents, has been contested in litigation between the SEC and Ripple, which was sued by the SEC in 2020 over unregistered sales of XRP. A judge ruled that only some of Ripple's sales were considered securities, leaving the regulatory status of XRP in a complex state as the SEC’s deadline to appeal that ruling approaches on October 7.
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