Bitwise has filed its registration statement with the U.S. Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) that aims to give investors exposure to the token XRP. In an S-1 filing made on Wednesday, the crypto index fund manager announced that BNY will act as the trust's administrator, while Coinbase Custody Trust Company, LLC will serve as the custodian for the spot XRP ETF.
According to the registration statement, "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." Furthermore, Bitwise asserts that XRP is not classified as a security, challenging past SEC assertions. The filing states, "XRP is a decentralized digital asset, and ownership of it is reflected on a decentralized ledger. Additionally, XRP is not a security, and is thus not subject to the protections of the U.S. federal securities laws."
A spot XRP ETF has not previously received SEC approval, and potential challenges loom if it does. The SEC is currently involved in a legal battle with Ripple, having accused the company of raising $1.3 billion through the sale of XRP, which it views as an unregistered security. Notably, Bitwise referenced the SEC's ongoing case against Ripple in its filing, warning, "If XRP is found by a court or other regulatory body to be a security, the Trust could be considered an unregistered 'investment company' under the Investment Company Act of 1940, potentially requiring the Trust’s liquidation under the terms of the Trust Agreement."
Bitwise’s registration statement follows a recent filing for an entity named Bitwise XRP ETF submitted to Delaware's Department of State's Division of Corporations. Some crypto ETFs began trading this year after receiving SEC approval, including several spot Bitcoin ETFs from firms such as BlackRock, Grayscale, and Fidelity, as well as eight Ethereum ETFs.
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