Cryptocurrency asset manager Bitwise has officially filed for the first spot XRP exchange-traded fund (ETF) with the United States Securities and Exchange Commission.
The Bitwise XRP ETF, subject to approval from the SEC, will provide exposure to the value of XRP (XRP) held by the trust “less the expenses of the trust’s operations and other liabilities,” the filing reads.
Source: Bitwise
“At Bitwise, we believe blockchains will usher in new, apolitical monetary assets and permissionless applications for the 21st century,” Bitwise CEO Hunter Horsley said in a press release announcing the news on Oct. 2.
“It’s why for the past seven years we’ve helped investors access the opportunities in the space, and we’re excited to continue that work with our filing for a Bitwise XRP ETP,” he added.
Coinbase to serve as XRP custodian
In the filing, Bitwise mentioned that the trust’s XRP holdings will be stored with the Coinbase Custody Trust Company, similar to its other crypto ETFs.
“The XRP custodian is not insured by the Federal Deposit Insurance Corporation but carries insurance provided by private insurance carriers,” the filing noted.
An excerpt from the Bitwise XRP ETF prospectus. Source: SEC
Bitwise also noted that the Bitwise XRP ETF creates and redeems shares using the cash-create method or in exchange for cash. “If the trust is successful in obtaining the necessary regulatory approvals to allow for creations and redemptions in-kind, the trust will notify shareholders,” the filing reads.
Bitwise’s ETF filing came shortly after Bitwise filed for an XRP ETF Trust in Delaware on Oct. 2, signaling that a formal filing with the SEC would follow.
Before filing for an XRP ETF, Bitwise became one of the first issuers to launch a spot Bitcoin (BTC) ETF in January. Bitwise was also among the firms that started trading spot Ether (ETH) ETFs in July.
While crypto ETF issuers like VanEck have also filed for a spot Solana (SOL) ETF, Bitwise has not filed for one at the time of writing.
Predictions and Easter eggs
Nate Geraci, president of the ETF Store — an investment advisory firm specializing in ETFs — gave his predictions and expectations for the spot XRP ETF, calling it “highly noteworthy.”
Geraci suggested that the filing is likely to be a “call option” of the “November election” but clarified that Bitwise “doesn’t just throw stuff” at a wall. He added:
“That’s simply not in their DNA. This is strategic.”
Journalist Eleanor Terrett also contributed, informing followers on X that Canary Capital, a crypto-focused investment firm, had incorporated an XRP ETF with the Delaware Division of Corporations on Sept. 24.
Related: Grayscale to launch US XRP trust, paving way for potential ETF
Terrett noted that the former chief investment officer and co-founder of asset management firm Valkryie founded the crypto investment firm.
Ripple Dubai license approval
On Oct. 1, Ripple, the blockchain technology company behind the XRP cryptocurrency, announced that it had received in-principle license approval from the Dubai Financial Service Authority, which allows the firm to establish a presence in the region.
Once fully approved, Ripple can offer cross-border payment services for fiat and digital assets in the Dubai International Financial center (DIFC) within the United Arab Emirates.
To finalize the process, companies in the DIFC, including crypto-related entities, must meet multiple prerequisites before they can be issued a full license in the UAE.
Additional reporting by Josh O’Sullivan.
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