Bitwise files registration for a spot XRP ETF
2024-10-02

Crypto index fund manager Bitwise has filed for a spot exchange-traded fund that would give investors exposure to the token XRP.
"We can confirm this is a registration by us," Bitwise Chief Investment Officer Matthew Hougan told The Block 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 listed as the registered agent. 
A spot XRP ETF has not been approved by the U.S. Securities and Exchange Commission before, and if it does, it would likely face challenges. The SEC has been embroiled in a legal fight with Ripple after the agency accused the company of raising $1.3 billion through the sale of XRP, which it views as an unregistered security.
Some crypto ETFs began trading this year after getting the agency's go-ahead. The SEC approved several spot Bitcoin ETFs in January, including from firms such as BlackRock, Grayscale, and Fidelity. Later, the agency approved eight Ethereum ETFs. 
Meanwhile, Grayscale said it has plans to launch an XRP "closed-end" fund for accredited investors. 
ETP v ETF
The SEC often uses the term exchange-traded products, or ETPs, when discussing these products. 
An SEC official last month noted that the term exchange-traded fund is "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 Georgetown University's Financial Markets Quality Conference on Sept. 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 some of the same considerations related to custody that we're grappling with," Greiner added. 
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.