XRP ETF Plans: Bitwise Files with SEC
XRP ETF– Bitwise Asset Management is making significant progress in its plans to launch an exchange-traded fund (ETF) tied to XRP, the cryptocurrency associated with Ripple. This move positions Bitwise at the forefront of the evolving landscape of crypto investment products.
Bitwise Files S-1 Form with the SEC
On Wednesday, Bitwise submitted an S-1 form to the U.S. Securities and Exchange Commission (SEC), a necessary step for companies looking to issue a new security and list it on a public stock exchange. As Bitwise CEO Hunter Horsley stated, Today we filed an S-1 for a Bitwise XRP ETP! For more than a decade, XRP has been an enduring crypto asset that many investors want exposure to. This filing is an initial move in a potentially lengthy process to bring the fund to market.
Today we filed an S-1 for a Bitwise XRP ETP!
— Hunter Horsley (@HHorsley) October 2, 2024
For more than a decade, XRP has been an enduring crypto asset that many investors want exposure to.
Over the past 6+ years we’ve worked to pioneer investment vehicles that provide access to the emerging opportunities in the space.…
Legal Entity Registration and Market Position
The day prior to the S-1 filing, Bitwise registered a trust entity titled XRP ETF with the state of Delaware, a common practice among companies aiming to establish legal entities for various purposes. XRP, currently the seventh-largest cryptocurrency by market capitalization at $33 billion, stands as a notable contender in the crypto market. Its more prominent rivals, Bitcoin (BTC) and Ethereum (ETH), already offer ETF options, reflecting the growing interest in crypto investment vehicles among traditional finance investors.
Future Steps and Industry Expert Insights
While the S-1 filing is an essential step, it must be followed by a 19b-4 filing, which requests a rule change at the stock exchange intending to list the investment. Unlike the 19b-4, the SEC is not obligated to respond to the S-1 within a specific timeframe, which means approval could take years. For example, VanEck filed for an ether ETF in 2021, but the fund only launched in July 2024, highlighting the potentially protracted nature of the approval process.
Industry expert Nate Geraci, president of the ETF Store, noted the significance of Bitwise’s efforts, stating, Bitwise is a highly credible crypto-native fund firm that doesn’t just throw stuff at the wall. This indicates strong confidence in Bitwise’s capability to navigate the complex regulatory landscape as they work toward launching their XRP ETF.
FAQs
What is the significance of Bitwise filing an S-1 for an XRP ETF?
The S-1 filing is a crucial first step in the process of launching a new exchange-traded fund (ETF) tied to XRP. This document is required by the U.S. Securities and Exchange Commission (SEC) for companies wishing to issue a new security. While it indicates Bitwise’s intention to create an XRP ETF, approval is not guaranteed and could take years, as the SEC has no specific timeline to respond to S-1 filings.
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