Bitwise Files for XRP Exchange-Traded Fund with SEC amid Regulatory Uncertainty

Bitwise, a crypto asset manager with over $4.5 billion in assets under management, has taken a bold step towards launching an XRP exchange-traded fund (ETF). The firm has submitted an initial registration statement to the Securities and Exchange Commission (SEC), signaling its intent to launch an ETF that would track the daily price of XRP, the seventh largest cryptocurrency with a market cap of over $30 billion.

This move comes on the heels of Bitwise’s recent launches of spot bitcoin and ethereum ETFs, as well as its acquisition of ETC Group, a leading issuer of crypto exchange-traded products in Europe. Bitwise CEO Hunter Horsley expressed optimism about the potential for an XRP ETF, stating that XRP is a well-known asset in the crypto space and recognized among mainstream investors.

However, the road to approval for an XRP ETF is not guaranteed, as the SEC has recently raised concerns over the legal status of certain cryptocurrencies. Some applications for ETFs containing Solana, the fifth largest cryptocurrency, were rescinded due to the SEC’s concerns. Despite this, Bitwise remains confident in the potential for an XRP ETF and believes it will provide a valuable opportunity for clients.

The regulatory status of XRP has been a point of contention for years, with the SEC suing blockchain payments firm Ripple in 2020 for failing to register sales of XRP as securities offerings. A judge ruled last year that only some of Ripple’s sales constituted securities, adding further complexity to the regulatory landscape.

As the SEC’s deadline to appeal the Ripple ruling approaches on October 7, the fate of XRP’s regulatory status remains uncertain. This could have implications for how the SEC views an XRP ETF, making Bitwise’s filing a pivotal development in the crypto industry.

Despite the challenges, the success of bitcoin ETFs in attracting billions of dollars in inflows this year demonstrates the growing demand for crypto investment products. If approved, an XRP ETF could open up new opportunities for investors looking to gain exposure to the digital asset market.