Asset management firm Bitwise has officially applied to create the first XRP spot exchange-traded fund (ETF) in the United States.
Bitwise recently registered a trust entity in Delaware as its first step in seeking regulatory approval to launch an XRP spot ETF in the US market.
On October 1, Bitwise registered a trust entity in the state of Delaware, marking the beginning of the process to file its application with the Securities and Exchange Commission (SEC) to launch a new investment fund. Through a statement, Bitwise confirmed its legitimate interest in launching an XRP-based exchange-traded fund, underscoring its commitment to increasing its investors’ exposure to digital assets.
The firm said cryptoassets are “apolitical monetary assets and permissionless applications for the 21st century.”
Bitwise moves forward with its XRP ETF
The Bitwise XRP ETF is designed to offer investors direct exposure to the market price of XRP, the native cryptocurrency of the Ripple network.
According to presentation According to the firm, the value of XRP would be held in a trust, minus operating expenses and other related liabilities, to provide investors with a regulated and transparent way to access this cryptocurrency, which is currently ranked seventh in the crypto market, in terms of capitalization.
Despite Bitwise's major announcement, the price of XRP has not seen a significant market reaction. According to CoinMarketCap data, Ripple's cryptocurrency is trading at around $0,58 per unit, down 4,9% in the past few hours. This is partly because the cryptocurrency market in general has faced significant declines in recent days, mainly due to international conflicts and global uncertainty.
However, experts such as Nate Geraci, president of ETF Store, have called Bitwise's application a highly notable development, considering that the crypto community has been waiting for the creation of a spot ETF for XRP for some time, especially after the legal controversy that Ripple has faced with the SEC.
In March of this year, Martin Hiesboeck, head of research at Uphold, said that an XRP spot ETF could be very close, generating excitement in the crypto community.
According to experts, the possibility of Bitwise achieving ETF approval could open up new opportunities for investors and further legitimize the use of XRP as a reliable financial asset.
Ripple's role in the global economy
Bitwise emphasized the important role Ripple has played in facilitating cross-border payments and remittances. It noted that this blockchain network has also been key in increasing institutional participation in the decentralized finance (DeFi) ecosystem and incentivizing the tokenization of real-world assets (RWA).
Bitwise also referred to Ripple as a key player in interoperability with the EVM (Ethereum Virtual Machine) blockchain ecosystem. Given all this, the firm stressed that the creation of an XRP spot ETF represents a significant step forward in allowing investors and institutions to continue exploring the opportunities of this blockchain.
However, Bitwise’s application is not the first related to an XRP ETF. Rumor has it that Canary Capital also recently submitted an application to the SEC to launch an exchange-traded fund based on the cryptocurrency.
These ETF applications were submitted in tandem with Ripple receiving authorization from Dubai’s Financial Services Authority to establish its presence in the region and expand its blockchain services internationally.
