- Bitwise files S-1 form for a spot XRP-ETF with the SEC.
- Coinbase Custody to serve as custodian for the fund.
- Bitwise established a trust organization in Delaware, likely as preparation for the ETF launch.
- The ETF will hold actual crypto assets, categorizing it as a spot ETF.
- The Bank of New York Mellon will manage the fund.
- SEC approval of forms 19b-4 and S-1 required before the ETF can launch.
- Bitwise is the first U.S. provider to file for a spot XRP-ETF.
- XRP’s market reaction to the news was muted, showing a 2.4% decline.
Bitwise Files for Spot XRP-ETF Registration with the SEC
Bitwise has officially filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) to register a spot XRP-ETF. This move signifies a bold step in the evolution of crypto investment products, with Coinbase Custody appointed as the custodian for the fund.
Organizational Preparations
Previously, Bitwise had registered a trust organization in Delaware. Such a step often indicates preparations for launching a new exchange-traded fund (ETF). According to the press release, the Bitwise XRP ETP will hold actual crypto assets on its balance sheet rather than derivative contracts, which classifies it as a spot ETF.
Fund Management and Custody
The Bank of New York Mellon will manage the fund, providing robust and experienced oversight. Coinbase Custody will act as the custodian, ensuring the secure storage of the crypto assets. Details such as the fund’s ticker, structure, and fee size have not been disclosed yet.
Regulatory Approvals
Before launching the new fund, the SEC must approve two key applications: forms 19b-4 and S-1. The 19b-4 form pertains to rule changes, while the S-1 form directly relates to the product listing.
Bitwise’s Vision
Hunter Horsley, CEO of Bitwise, emphasized the company’s belief in the transformative potential of blockchains. “We believe that blockchains will unlock new, apolitical monetary assets and permissionless applications for the 21st century. For the past seven years, we have been helping investors access opportunities in this space, and we are excited to continue this work by filing for the Bitwise XRP ETP,” Horsley stated.
Market Response
Despite this groundbreaking move, XRP showed no significant market reaction. It traded with a 2.4% decline on the daily chart, indicating that the news did not significantly impact its value.
Previous Ventures
Grayscale Investments, another major player in the crypto investment space, had previously launched an XRP-based trust. Should the SEC approve spot ETFs based on the asset, products like this could be converted, similar to what occurred with GBTC.
Bitwise’s filing marks a significant milestone as the first U.S. provider to apply for a spot XRP-ETF. This development could pave the way for new investment opportunities and further integration of blockchain technology into mainstream finance.
