Bitwise Officially Files for XRP ETF with SEC

Bitwise Asset Management has officially submitted its plans for an exchange-traded fund (ETF) linked to Ripple's XRP to the U.S. Securities and Exchange Commission (SEC). This move marks a significant step in the cryptocurrency market, as XRP is one of the largest digital assets by market capitalization.

Key Takeaways

• Bitwise has filed an S-1 form with the SEC for an XRP ETF.

• The filing follows the registration of a trust entity named "XRP ETF" in Delaware.

• XRP is currently the seventh-largest cryptocurrency, valued at approximately $33 billion.

• The approval process for the ETF could take years, as the SEC is not obligated to respond promptly to the S-1 filing.

Bitwise's Strategic Move

On Wednesday, Bitwise submitted the S-1 filing, a necessary step for companies looking to issue new securities and list them on public exchanges. Hunter Horsley, CEO of Bitwise, expressed enthusiasm about the filing, stating, "For more than a decade, XRP has been an enduring crypto asset that many investors want exposure to."

This filing comes just a day after Bitwise registered a trust entity in Delaware, a common practice among companies in the financial sector to signal their intentions. The registration of the "XRP ETF" trust indicates that Bitwise is serious about launching this investment product.

The Current Landscape of XRP

XRP has gained significant attention in recent months, especially following the conclusion of the Ripple-SEC legal case, which has positively impacted its market performance. As of now, XRP holds a market capitalization of around $33 billion, making it a prominent player in the cryptocurrency space.

In comparison, Bitcoin (BTC) and Ethereum's ether (ETH) have already been made available to investors through ETFs, showcasing the growing acceptance of cryptocurrency in traditional finance.

The Approval Process

While the S-1 filing is a crucial first step, it is important to note that it is essentially a preliminary document. For the ETF to be officially launched, Bitwise will need to file a subsequent document known as the 19b-4. This filing is essential for signaling a necessary rule change at the stock exchange where the ETF would be listed.

The timeline for approval can be lengthy. For instance, VanEck filed an S-1 for an ether ETF in 2021, but it took over three years for the fund to finally hit the market in July 2024. This highlights the unpredictable nature of the SEC's approval process.

Industry Expert Insights

Nate Geraci, president of the ETF Store, commented on Bitwise's filing, stating that it is "highly noteworthy." He emphasized that Bitwise is a credible firm in the crypto space, known for its thoughtful approach rather than impulsive decisions. This sentiment reflects the cautious optimism surrounding the potential launch of the XRP ETF.

Conclusion

Bitwise's official filing for an XRP ETF represents a significant development in the cryptocurrency market. As the SEC reviews the application, investors and industry experts alike will be watching closely to see how this unfolds. The potential approval of an XRP ETF could pave the way for broader acceptance of cryptocurrencies in traditional investment portfolios, further bridging the gap between digital assets and mainstream finance.

Sources

• Bitwise Makes XRP ETF Plans Official With SEC Filing, CoinDesk.

• Bitwise hace oficiales sus planes para un fondo cotizado (ETF) de XRP con un registro ante la SEC, CoinDesk.

• Bitwise Ginagawang Opisyal ang Mga Plano ng XRP ETF Sa Pag-file ng SEC, CoinDesk.