Bitwise Files for XRP ETF

Bitwise has filed its registration statement with the U.S. Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) to provide investors exposure to the token XRP.

In an S-1 filing made on Wednesday, the crypto index fund manager stated that BNY will serve as the trust’s administrator, while Coinbase Custody Trust Company, LLC will act as the custodian for the spot XRP ETF.

“The Trust’s investment objective is to seek to provide exposure to the value of XRP held by the Trust, less the expenses of the Trust’s operations and other liabilities,” the firm mentioned in its registration statement.

Bitwise also asserted in its filing that XRP is not a security, opposing previous SEC statements on the matter.

“XRP is a decentralized digital asset, and ownership of it is reflected on a decentralized ledger. Additionally, XRP is not a security and is thus not subject to the protections of U.S. federal securities laws,” the registration statement reads.

Historically, the SEC has not approved a spot XRP ETF, and should it do so, potential challenges may arise. The agency is currently involved in legal disputes with Ripple, accusing the company of raising $1.3 billion through the sale of what it classifies as an unregistered security.

Bitwise’s filing on Wednesday referenced the SEC’s ongoing case against Ripple.

“If XRP is found by a court or other regulatory body to be a security, the Trust could be considered an unregistered investment company under the Investment Company Act of 1940, possibly necessitating the Trust’s liquidation under the terms of the Trust Agreement,” the registration statement noted.

This filing follows an entity registration for Bitwise XRP ETF with Delaware’s Division of Corporations, where CSC Delaware Trust Company is listed as the registered agent.

“For more than a decade, XRP has been a significant crypto asset that many investors want exposure to,” stated Bitwise CEO Hunter Horsley on X. “Over the past 6+ years, we’ve endeavored to create investment vehicles that provide access to emerging opportunities in the space.”

Ripple CEO Brad Garlinghouse also commented on social media, stating:

“This move underscores the growing trust and integration of digital assets like XRP into traditional finance, marking the continued adoption and maturation of the crypto market. I sense this is just the beginning.”

Several crypto ETFs have started trading this year following SEC approvals, including spot Bitcoin ETFs from firms such as BlackRock, Grayscale, and Fidelity, as well as eight Ethereum ETFs.

_Updated: Oct. 2, 15:00 UTC: Added quotes from Brad Garlinghouse and Hunter Horsley.