Key Takeaways
- Bitwise has filed a Form S-1 registration statement to the SEC to launch an ETF tracking XRP.
- The regulatory status of XRP has been heavily contested by the agency.
- Although a significant first step for the firm, it is unclear whether the SEC will grant the application.
Bitwise has filed an initial application to the Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tracking XRP, the coin linked with crypto firm Ripple.
By submitting an S-1 registration statement to the SEC, Bitwise aims to become the first company to gain approval for a spot ETF that tracks the daily price of XRP.
Bitwise Files for XRP ETF
On Wednesday, Oct. 2, Bitwise filed an S-1 registration statement with the SEC, just one day after filing a trust entity with the Delaware Department of State’s Division of Corporations.
“The Trust’s investment objective is to seek to provide exposure to the value of XRP held by the Trust, less the expenses of the Trust’s operations and other liabilities,” Bitwise said in its registration statement.
The ETF will track the daily price of XRP, which currently has a market cap of over $30 billion.
“We believe blockchains will usher in new apolitical monetary assets and permissionless applications for the 21st century,” said Bitwise CEO Hunter Horsley.
“We aim to help investors access the opportunities in the space and are excited to continue that work with our filing for a Bitwise XRP ETP.”
SEC Approval Uncertain
Although a significant first step for the firm, it is unclear whether the SEC will grant an ETF on XRP.
The SEC surprised investors at the beginning of the year when it approved spot Bitcoin ETFs, marking a significant step forward for crypto adoption in the U.S. This was closely followed by the approval of spot Ether ETFs in July.
However, the agency has heavily contested the regulatory status of XRP since it first filed a lawsuit to get the token classed as a security in December 2020.
Ripple scored a major victory against the SEC after a three-year court battle. District Judge Analisa Torres ruled that secondary sales of XRP to retail customers did not qualify as security, opening up the gates to the coin after years of legal battles.
With the Oct. 7 deadline approaching for the SEC to appeal this ruling, the filing from Bitwise has definitely come at a strategic time. It is unlikely that the SEC will approve an XRP ETF if its regulatory status is still contested.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
