Bitwise Challenges SEC's Stance on XRP, Files to Launch Spot XRP ETF

Bitwise Asset Management has taken a bold step in seeking approval for a spot XRP exchange-traded fund (ETF).

Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot XRP exchange-traded fund (ETF). The ETF would track the value of XRP, one of the largest cryptocurrencies by market capitalization.

If approved, the trust would be administered by BNY Mellon and the XRP ETF would be custodied by Coinbase Custody Trust Company, LLC. Notably, Bitwise also asserted in the filing that XRP is not a security, directly challenging the SEC's stance on the matter.

The filing comes as XRP has seen a renewed interest following a favorable court ruling in July. Several exchanges, including Coinbase, have relisted XRP after the federal judge's declaration.

The approval of a spot XRP ETF would be a major win for Bitwise and the crypto industry at large. It would provide retail and institutional investors with a regulated vehicle to gain exposure to XRP.

Collectively, Bitwise's spot Bitcoin ETF has attracted over $2 billion in investor funds in the past eight months. Notably, the ETF has a lower management fee of 0.20%. BITB has been trading in close alignment with Bitcoin, with a discount or premium to NAV hovering around 0%.

This has recently led to Bitwise's Bitcoin and Ethereum ETFs receiving a capital infusion from a large Registered Investment Advisor (RIA). While Bitwise has been performing well in the crypto market, its performance and that of other crypto asset managers have been dwarfed by Blackrock's iShares Bitcoin Trust (IBIT).