On October 2, 2024, Bitwise officially submitted its S-1 filing for a spot XRP ETF to the U.S. SEC, marking a significant development for cryptocurrency investors.
With custody provided by Coinbase and the fund administered by BNY Mellon, this ETF could offer new opportunities for those interested in XRP.
Could this ETF mark the next major step for crypto investment? Explore the full details and what this means for the market.
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S-1 Filing for Bitwise XRP ETP Submitted
On October 2, 2024, Bitwise, a leading U.S. cryptocurrency asset management firm, officially announced that it had submitted the S-1 form for the "Bitwise XRP ETP" to the U.S. Securities and Exchange Commission (SEC).
This filing represents a key step towards the launch of a spot XRP exchange-traded fund (ETF).
While documents released on Delaware’s website previously hinted that Bitwise was preparing to offer a spot XRP ETF, this marks the first official announcement from Bitwise confirming the submission of their XRP ETF filing with the SEC.
The submitted S-1 form outlines important details about the ETF’s structure, investment objectives, management methods, risk factors, and fees.
According to the official statement, the launch of the Bitwise XRP ETP will be contingent upon the approval of the S-1 form as well as the validation of a related 19b-4 form.
Redemption in Cash, Custody by Coinbase
The contents of the Bitwise XRP ETP’s S-1 form can be viewed on the SEC's official website, revealing that BNY Mellon will serve as the fund's administrator and Coinbase Custody Trust Company will handle the custody of XRP.
Additionally, the ETF will adopt a "cash-based redemption method." However, if regulators later approve the use of physical XRP for creations and redemptions, shareholders will be notified through annual or quarterly reports.
Bitwise is already a player in the Bitcoin (BTC) and Ethereum (ETH) spot ETF markets, so if the XRP ETF is approved, Bitwise will be able to offer spot ETFs for BTC, ETH, and XRP.
Uncertainty Surrounding SEC Approval Amid Legal Proceedings
Although Bitwise has filed its S-1 form, the approval of the XRP spot ETF remains uncertain. Earlier this month, on October 2, the SEC filed an appeal in its ongoing litigation concerning the status of XRP as a security.
Despite this, the filing of an XRP ETF by Bitwise could spark additional applications from other companies, potentially expanding the range of available cryptocurrency ETFs.
As a result, industry observers are closely monitoring developments.
>> Click here for the latest XRP-related news
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