Key takeout
- The SEC has confirmed that Bitwise has submitted it to the Spot XRP ETF and has launched a review that could last up to 90 days.
- The proposed ETF regulates investors' access to XRP, a native asset designed for cross-border payments.
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The SEC today approved submissions from Bitwise to the Spot XRP ETF, marking a formal review of the regulator's proposal.
Cboe BZX Exchange submitted a proposal on February 6th to list and exchange Bitwise XRP ETFs as commodity-based trust shares.
With acknowledgements currently in hand, the SEC has up to 90 days to verify the application and provide formal response.
The proposed ETF provides exposure to investors in XRP, the native asset of the XRP ledger, through traditional financial instruments.
The filing points out that XRP mainly serves as a tool for fast, low-cost cross-border payments, often distinguishing it from Bitcoin and Ethereum.
It also brings out similarities between the XRP market characteristics and the Bitcoin and Ethereum market characteristics.
The proposal highlights XRP's liquid, dispersed, resilient market structure.
Additionally, it refers to the SEC v. Ripple Labs court decision that held that Ripple's XRP programme sales are not securities transactions.
If approved, the ETF will eliminate the self-supporting requirements while providing regulated access to XRP investments.
The document emphasizes that trading on regulated exchanges will ensure price transparency and encourage market entry and exit, while competition will be compared with existing commercial crypto funds. It emphasizes that it could promote lower management fees.
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