Bitwise Files for XRP Spot ETF

Crypto index fund manager Bitwise has filed for a spot exchange-traded fund (ETF) providing investors exposure to the token XRP.

“We can confirm this is a registration by us,” Bitwise Chief Investment Officer Matthew Hougan told The Block on Tuesday. “It is a registration of a trust entity in Delaware. We can share more details and comments tomorrow.”

A filing for an entity named Bitwise XRP ETF was submitted to Delaware’s Department of State’s Division of Corporations on Monday, with CSC Delaware Trust Company as the registered agent.

So far, a spot XRP ETF has not been approved by the U.S. Securities and Exchange Commission (SEC). If approved, it is expected to face challenges due to the ongoing legal battle between the SEC and Ripple. The SEC accuses Ripple of raising $1.3 billion through the sale of XRP, which it views as an unregistered security.

Several crypto ETFs have started trading this year after receiving approval from the SEC. In January, the SEC approved multiple spot Bitcoin ETFs from firms like BlackRock, Grayscale, and Fidelity, followed by the approval of eight Ethereum ETFs.

In the meantime, Grayscale plans to launch an XRP closed-end fund for accredited investors.

ETP vs ETF

The SEC frequently uses the term exchange-traded products (ETPs) when referring to these products. An SEC official clarified last month that the term exchange-traded fund is often “misused.”

“When we’re talking about spot bitcoin ETPs, they’re exchange-traded products,” said Natasha Vij Greiner, director of the SEC’s Division of Investment Management, during a conference on September 17. “They’re actually not under the ’40 Act [Investment Company Act of 1940], they’re not a 40 act product, and so there are not the same protections and custody considerations that we’re grappling with,” Greiner added.