- The first-ever XRP ETF application has been submitted to the US Securities and Exchange Commission
- On October 2, 2024, Bitwise filed a Form S-1 seeking approval to launch an XRP ETF.
Bitwise has submitted an initial registration document to initiate the first spot XRP exchange-traded fund.
On Wednesday, Oct. 2, the cryptocurrency asset manager declared that it had filed a Form S-1 with the US Securities and Exchange Commission for the Bitwise XRP ETF.
XRP is the cryptocurrency associated with Ripple. Currently, it stands as the seventh-largest crypto asset by market capitalization, exceeding $32 billion.
First XRP ETF
Bitwise, which is already providing a spot Bitcoin ETF and an Ethereum spot ETF, is the first organization to formally seek authorization for an exchange-traded fund that tracks the daily value of XRP.
Ripple’s CEO, Brad Garlinghouse, responded to the news via X:
First BTC, then ETH…it was only a matter of time.
This action highlights the increasing trust & incorporation of digital assets like XRP into traditional financial systems, indicating the ongoing acceptance and growth of the crypto market. I believe this is just the start. https://t.co/s1pHpIEqth
— Brad Garlinghouse (@bgarlinghouse) October 2, 2024
The news that Bitwise is pursuing SEC approval for an XRP ETF came after the filing for an XRP ETF Trust in Delaware on Tuesday, October 2, 2024.
With the official Form S-1 submission, the Bitwise XRP ETP will now await the SEC’s endorsement, which also includes the Form 19b-4.
Commenting on the application, Bitwise CEO Hunter Horsley stated:
“At Bitwise, we believe blockchain technology will bring forth new, unbiased monetary assets and unrestricted applications for the 21st century… This is why, for the past seven years, we’ve enabled investors to seize opportunities in this field, and we’re eager to continue that mission with our filing for a Bitwise XRP ETP.”
Will the SEC challenge the XRP ruling?
Bitwise’s S-1 filing arrives just a few days ahead of the deadline for the SEC to contest the 2023 court decision regarding XRP’s classification. This deadline, set for October 7, pertains to the SEC’s lawsuit against Ripple and its executives over XRP sales, which the regulator classified as a security until a US judge determined otherwise in July of the previous year.
If the SEC opts to appeal the ruling concerning XRP sales, it will be intriguing to observe the regulator’s approach toward the XRP ETF application.
Ripple has been embroiled in a legal dispute with the SEC since December 2020. In August 2024, Judge Analisa Torres ruled that Ripple Labs must pay a $125 million civil penalty as part of a settlement with the securities agency.
XRP’s price surged following this announcement. However, the coin has since retracted most of its gains and is trading around $0.58 at the moment of this writing.
