Crypto asset manager Bitwise is applying for the first XRP exchange-traded fund

Crypto asset manager Bitwise has filed an initial registration statement with the Securities and Exchange Commission, signaling its intent to launch an XRP exchange-traded fund, FOX Business has learned.

Bitwise, which has over $4.5 billion in assets under management, filed a registration statement on Form S-1 with the SEC on Wednesday morning, becoming the first company to formally seek approval for a so-called spot ETF would reflect the daily price of XRP. the seventh largest cryptocurrency with a market capitalization of more than $30 billion.

The filing follows Bitwise’s recent launches of spot Bitcoin and Ethereum ETFs and its acquisition of ETC Group, a leading issuer of crypto exchange-traded products in Europe.

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Despite this first step, there is no guarantee that an XRP ETF can pass the SEC’s regulatory requirements. Some applications for ETFs containing Solana, the No. 5 cryptocurrency, were recently withdrawn with reports citing SEC concerns about Solana’s legal status.

Bitwise was not among the issuers to apply for a Solana ETF and believes that exposure to XRP will be a good opportunity for customers.

“XRP is one of the most consistent and well-known assets in this space and is also recognized by mainstream investors,” Bitwise CEO Hunter Horsley told FOX Business. “At Bitwise, our goal has always been to make it easier for investors to access the opportunities in this space, and we are pleased to continue this work with our application for a Bitwise XRP ETP.”

On Tuesday, FOX Business was first to report on the Bitwise XRP ETF filing that appeared on the Delaware Division of Corporations website. A Bitwise executive confirmed that the filing was authentic.

Another application for an XRP ETF is listed on the Delaware Corporation website of Canary Capital, a new crypto-focused investment firm founded by Steven McClurg, co-founder and former chief investment officer of Valkyrie Funds. The website shows that the Canary XRP ETF was created on September 24th.

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McClurg did not immediately comment on the filing.

For Bitwise, the S-1 filing marks the beginning of a multi-stage approval process that could take several months. However, given the unclear regulatory status of many crypto tokens, there is no guarantee that the SEC will approve an ETF containing XRP. This year, the SEC made headlines when it approved the first Bitcoin and Ethereum ETFs for trading on Wall Street, reflecting its assertion that the two leading cryptocurrencies are not securities.

The regulatory status of XRP, which currently trades at around 60 cents per token, has been hotly contested during years of litigation between the SEC and blockchain payments company Ripple, after the regulator sued the company in 2020 over its sales of XRP , which had not registered, are considered unregistered securities offerings. A judge handed Ripple a partial victory last year when she ruled that only some of Ripple’s sales, namely those to institutional rather than retail investors, constituted securities.

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The Bitwise XRP ETF filing comes at a crucial time as the SEC’s deadline to appeal the Ripple ruling is October 7th. Should the agency appeal, XRP’s regulatory status could remain in limbo, potentially impacting how the SEC would evaluate an XRP ETF.

Despite initial resistance from financial regulators, Bitcoin ETFs have become the most successful exchange-traded products in history, recording $17 billion in inflows since January.