Bitwise XRP ETF Launches on SEC Website: Key Details Inside

The Bitwise XRP ETF application has officially been posted on the US Securities and Exchange Commission (SEC) website. If approved, this groundbreaking filing will provide institutional investors a way to gain exposure to XRP.

Bitwise XRP ETF Now Available On SEC Website

The asset management firm has submitted Form S-1 for its Bitwise XRP ETF, signaling a significant step toward introducing a Spot XRP ETF. This fund will directly hold XRP, allowing investors to access the cryptocurrency through the securities market. It will resemble the Spot Bitcoin and Ethereum ETFs that received approval earlier this year.

According to Bitwise’s press release, the establishment of this fund depends on the effectiveness of Form S-1 and the approval of the Form 19b-4 filing, which has not yet been submitted by any exchange. This registration allows an exchange to propose a rule change necessary for offering the XRP ETF on its platform.

In discussing the S-1 application, Bitwise emphasized that XRP is a persistent crypto asset that investors are eager to engage with. This spurred the decision to pursue the inaugural XRP ETF. The asset manager is well-established in the crypto landscape, already offering Spot Bitcoin and Ethereum ETFs.

Additionally, Bitwise’s S-1 form submission is pivotal as it indicates their endorsement of Judge Analisa Torres’ ruling that XRP does not qualify as a security. Nonetheless, the approval of the fund ultimately rests on whether the SEC concurs with this interpretation. In August, the Commission dismissed the 19b-4 applications for Spot Solana ETFs due to ongoing concerns regarding SOL’s legal status.

Market analysts, including Bloomberg’s Eric Balchunas and Nate Geraci, President of the ETF Store, have commented on the likelihood of approval. They indicated that approval might not occur until post-US elections. Meanwhile, Alex Thorn, Head of Firmwide Research at Galaxy Digital, remarked that the chances of approval diminish to zero if the SEC were to appeal its case against Ripple.

SEC Has Filed an Appeal Against Ripple

The SEC has lodged a notice of appeal in its proceedings against Ripple, signaling its intention to contest Judge Torres’ ruling that XRP is not a security or the $125 million penalty imposed on Ripple. As Thorn forecasted, this appeal suggests that the Bitwise XRP ETF is unlikely to receive approval in the near future, particularly if the SEC’s case hinges on XRP’s security status.

The SEC’s move to appeal has reintroduced uncertainty into the XRP landscape, as the cryptocurrency’s status remains disputed. Ripple’s CEO Brad Garlinghouse mentioned that after Bitwise’s application, he anticipates more asset managers will seek to file for an XRP ETF. Nevertheless, this seems improbable at this time, given that the Ripple SEC legal battle is expected to last considerably longer.