Bitwise, a prominent crypto index fund manager, has officially filed for a spot XRP exchange-traded fund (ETF) that aims to provide investors with exposure to the XRP token. According to Bitwise Chief Investment Officer Matthew Hougan, the registration has been confirmed as a trust entity based in Delaware.
The filing, which was submitted to Delaware's Department of State's Division of Corporations, includes an entity named Bitwise XRP ETF. The registered agent for this filing is CSC Delaware Trust Company. Despite the growing interest, a spot XRP ETF has not yet received approval from the U.S. Securities and Exchange Commission (SEC).
The SEC has been involved in a legal battle with Ripple, the company behind XRP, following accusations of raising $1.3 billion through the unregistered sale of XRP as a security. This ongoing situation raises questions about the potential challenges Bitwise may encounter in securing approval for their ETF.
Earlier this year, several crypto ETFs received approval from the SEC. Notably, the SEC greenlit multiple spot Bitcoin ETFs, including those from major firms like BlackRock, Grayscale, and Fidelity, along with eight Ethereum ETFs.
In addition to Bitwise's filing, Grayscale has announced plans to launch an XRP closed-end fund aimed at accredited investors, further showcasing the growing interest in XRP investment vehicles.
It’s important to note that the SEC frequently refers to these financial products as exchange-traded products (ETPs). An SEC official recently commented on the misuse of the term ETF, emphasizing that many products, including spot bitcoin ETPs, do not fall under the Investment Company Act of 1940, leading to different regulatory considerations.
Disclaimer: The Block is an independent media outlet providing news and data. As of November 2023, Foresight Ventures is a majority investor. This article serves informational purposes only and is not financial advice.
