[NEWS] First XRP spot ETF? Bitwise files with SEC

Cryptocurrency management company Bitwise has filed a registration statement with the SEC, indicating its intention to launch a XRP spot ETF.

Bitwise, which manages more than $4.5 billion in assets, filed a Form S-1 registration statement with the SEC on the 2nd, formally seeking approval for a spot ETF that tracks the price of the cryptocurrency XRP.

The application comes shortly after Bitwise recently launched Bitcoin (BTC) and Ethereum (ETH) and acquired ETC Group, a major European cryptocurrency exchange-traded fund (ETF) issuer.

It is unclear whether the application will pass SEC review. Part of the application, including a spot ETF for the cryptocurrency Solana (SOL), was withdrawn following reports that the SEC was concerned about Solana's legal status.

Bitwise CEO Hunter Horsley said in an interview with FOX Business, "Bitwise has always aimed to help investors access opportunities in this space, and we are pleased to continue that effort through the filing of the Bitwise XRP ETP."

On the 1st, FOX Business first reported on the XRP spot ETF filing, which was posted on the Delaware Corporations website. At the time, Bitwise executives confirmed that the filing was genuine.

The Delaware Corporations website also features a separate filing for an XRP spot ETF from Canary Capital, a new crypto investment firm founded by Steven McClurg, co-founder and former chief investment officer of Valkyrie Funds.

The Canary XRP ETF launched on September 24, according to the website.

McClurg did not comment on the filing.

For Bitwise, the S-1 filing marks the start of a multi-step approval process that could take several months.

However, the regulatory position on crypto assets is still unclear, so it is unclear whether the SEC will approve a spot ETF that includes XRP.

The regulatory position of XRP has been unstable in the long-running litigation between the SEC and Ripple.

Will the SEC's new structure make this more likely?

In 2020, the SEC filed a lawsuit against the SEC, deeming XRP sales to be unregistered securities. Last year, a judge ruled that only Ripple's sales to institutional investors, not individual investors, constituted securities, giving Ripple a partial victory.

The SEC's decision to approve an XRP spot ETF contradicts the SEC's own claims. Therefore, it is unlikely that approval will occur unless the current Biden administration is replaced by the next administration and the SEC is restructured. 

Reference: SEC
Image: Shutterstock

Related articles

Ripple meets with National Bank of Georgia to discuss digitalization of the economy

Ripple to issue US dollar-pegged stablecoin to compete with Tether and Circle