Bitwise Proposes First Spot XRP ETF in a Bold Move Amid Regulatory Uncertainty
Why an XRP ETF?
The proposed ETF, which is pending the effectiveness of its Form S-1 registration and the approval of Form 19b-4, aims to directly hold XRP. This initiative builds on Bitwise’s successful track record with other cryptocurrency-based funds, including those focused on Bitcoin and Ethereum launched earlier this year.
Bitwise CEO Hunter Horsley commented on the filing, highlighting the transformative potential of blockchain technology in creating new monetary assets and applications. “For the past seven years, we’ve helped investors access the opportunities in the space, and we’re excited to continue that work with our filing for a Bitwise XRP ETP,” Horsley stated.
Challenges Ahead: Regulatory Hurdles
Despite the optimistic outlook from Bitwise and Ripple, the path to approval for the XRP ETF is fraught with challenges, particularly given the current U.S. regulatory climate and Ripple’s ongoing legal battle with the SEC. Alex Thorn, Head of Research at Galaxy Digital, expressed skepticism about the ETF’s approval prospects, especially if the SEC decides to appeal a recent court ruling favoring XRP. “SEC has until next week (Oct. 7) to appeal Judge Torres’ July 2023 ruling (which held that secondary sales of XRP through exchanges were not securities). The likelihood of this ETF filing succeeding drops to near zero if they do appeal (I’ll be very surprised if they don’t appeal),” Thorn explained.
This development comes shortly after Grayscale Investments launched a new XRP-focused crypto investment trust, further highlighting the growing institutional interest in XRP despite regulatory uncertainties.
Disclaimer: This article is for informational purposes only and should not be taken as investment advice. Please conduct your own due diligence before making any investment decisions.
