Étienne Girard
Bitwise has officially submitted a registration statement to the SEC for a new XRP ETF designed to offer investors exposure to XRP. In the S-1 filing submitted on Wednesday, Bitwise, a crypto index fund manager, revealed that BNY Mellon would handle administrative duties for the fund, while Coinbase Custody Trust Company, LLC would serve as the custodian for the spot XRP ETF.
According to the registration document, the ETF’s goal is “to provide investors with exposure to the value of XRP held by the Trust, minus operational expenses and other liabilities.”
Bitwise took a firm stance in its filing, claiming that XRP is not a security, which counters the SEC’s prior assertions. “XRP is a decentralized digital asset, tracked on a decentralized ledger. Furthermore, it is not a security and thus falls outside the scope of U.S. federal securities laws,” the statement reads.
This marks the first attempt to establish a spot XRP exchange-traded fund, and it could encounter obstacles if approved. The SEC has been engaged in an ongoing legal battle with Ripple, alleging the company raised $1.3 billion through unregistered XRP sales, which the regulator has classified as a security.
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Bitwise acknowledged the ongoing legal case in its filing, stating: “If a court or regulatory body were to determine that XRP is a security, the Trust could potentially be considered an unregistered ‘investment company’ under the Investment Company Act of 1940, potentially leading to the liquidation of the Trust as stipulated in the Trust Agreement.”
This registration comes shortly after another filing on Monday for the entity called Bitwise XRP ETF was submitted to Delaware’s Department of State’s Division of Corporations, with CSC Delaware Trust Company listed as the registered agent.
Comments from Bitwise and Ripple Executives About XRP ETF
Bitwise CEO Hunter Horsley commented on the filing, noting that “XRP has been a prominent crypto asset for over a decade, and many investors are seeking exposure to it.” He added, “For more than six years, we’ve worked to pioneer investment vehicles that grant access to emerging opportunities in the crypto space.”
Ripple’s CEO, Brad Garlinghouse, also shared his thoughts on social media, emphasizing the growing acceptance of digital assets in traditional finance. “This marks an important step in the integration of assets like XRP into conventional financial systems, showing the ongoing maturation of the crypto industry,” he stated. “I believe this is just the beginning.”
Several crypto ETFs have launched this year after receiving regulatory approval. In January, the SEC greenlit spot Bitcoin ETFs from companies such as BlackRock, Grayscale, and Fidelity. It later gave the nod to eight Ethereum ETFs as well.
