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) that would give 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 be 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 said in its registration statement.

Bitwise also asserted in its filing that XRP is not a security, countering previous statements from the SEC.

> "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 the U.S. federal securities laws," according to the registration statement.

A spot XRP ETF has never been approved by the SEC, and if it does receive approval, it may face challenges. The SEC is involved in a legal dispute with Ripple, which it accuses of raising $1.3 billion through the sale of XRP, deemed an unregistered security.

Bitwise also referenced the SEC's case against Ripple in its filing.

> "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, which could necessitate the Trust’s liquidation under the terms of the Trust Agreement," according to the registration statement.

Bitwise's filing comes after another registration for an entity named Bitwise XRP ETF was submitted to Delaware's Department of State's Division of Corporations, listing CSC Delaware Trust Company as the registered agent.

> "For more than a decade, XRP has been an enduring crypto asset that many investors want exposure to," said Bitwise CEO Hunter Horsley in a post on X. "Over the past 6+ years, we’ve worked to pioneer investment vehicles that provide access to the emerging opportunities in the space."

Ripple CEO Brad Garlinghouse also shared his thoughts on social media about the filing.

> "This move underscores the growing trust & integration of digital assets like XRP into traditional finance, marking the continued adoption and maturation of the crypto market," he posted on X. "I sense this is just the beginning."

Some crypto ETFs started trading this year after receiving SEC approvements. The SEC approved several spot Bitcoin ETFs in January, from firms such as BlackRock, Grayscale, and Fidelity, followed by eight Ethereum ETFs.

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