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Crypto asset management company Bitwise has filed an initial registration statement with the Securities and Exchange Commission, indicating its intention to launch an XRP exchange-traded fund, FOX Business has learned.
Bitwise, which manages more than $4.5 billion in assets, filed a Form S-1 registration statement with the SEC on Wednesday morning, making it the first company to formally seek approval for a so-called spot ETF that tracks the daily price of XRP. It became. The 7th largest cryptocurrency with a market capitalization of over $30 billion.
The filing follows Bitwise's recent launch of the Spot Bitcoin and Ethereum ETF and acquisition of ETC Group, a leading issuer of crypto exchange traded products in Europe.
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Despite this first step, there is no guarantee that the XRP ETF will pass the SEC's regulatory board. Some filings for ETFs containing Solana, the fifth-largest cryptocurrency, were recently revoked due to reports citing SEC concerns over Solana's legal status.
Bitwise is not among the issuers applying for the Solana ETF and believes exposure to XRP is a good opportunity for its clients.
“XRP is one of the most durable and well-known assets in the space and is recognized among mainstream investors,” Bitwise CEO Hunter Horsley said on FOX told Business. “At Bitwise, we are always looking to help investors access opportunities in this space, and we are excited to continue that effort with the filing of the Bitwise XRP ETP.”
On Tuesday, FOX Business first reported the Bitwise XRP ETF application posted on the Delaware Department of Corporations website. Bitwise executives confirmed the authenticity of the application.
Another filing for an XRP ETF by Canary Capital, a new cryptocurrency-focused investment firm founded by Stephen McClurg, co-founder and former chief investment officer of Valkyrie Funds, appears on the Delaware corporation website Published. The website shows that the Canary XRP ETF was founded on September 24th.
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McClurg had no immediate comment on the application.
For Bitwise, the S-1 filing marks the beginning of a multi-step approval process that could last several months. However, given the ambiguous regulatory status of many crypto tokens, there is no guarantee that the SEC will approve an ETF containing XRP. This year, the SEC made headlines by approving the first Bitcoin and Ethereum ETFs for trading on Wall Street, arguing that the top two cryptocurrencies are not securities.
Currently trading at about 60 cents per token, XRP's regulatory status comes after regulators sued the company in 2020 for failing to register XRP for sale. It has been hotly contested in many years of litigation. It is considered an offer of unregistered securities. Last year, a judge handed Ripple a partial victory, ruling that only a portion of Ripple's sales (sales to institutional investors rather than individual investors) constituted securities.
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The Bitwise XRP ETF filing comes at a critical time, as the deadline for the SEC's appeal of the Ripple ruling is October 7th. If the regulator appeals, XRP's regulatory status could be left in limbo and could impact how the SEC views XRP ETFs. .
Despite initial pushback from financial regulators, Bitcoin ETFs have become one of the most successful exchange-traded products in history, with $17 billion in inflows since January.
