Bitwise Officially Initiates XRP ETF Application with SEC

Bitwise Asset Management has taken a significant step toward launching an exchange-traded fund (ETF) linked to XRP, a prominent cryptocurrency associated with Ripple.

On Wednesday, the firm submitted an S-1 filing to the U.S. Securities and Exchange Commission (SEC), which is a critical procedure for companies aiming to issue new securities and trade them on public exchanges.

Bitwise CEO Hunter Horsley shared the announcement, stating, "Today we filed an S-1 for a Bitwise XRP ETP! For over a decade, XRP has been a respected crypto asset that many investors desire exposure to."

The filing follows Bitwise's registration of a trust entity titled 'XRP ETF' in Delaware, a standard practice among many companies in the crypto ETF space.

Currently, XRP stands as the seventh-largest cryptocurrency by market cap, valued at $33 billion. In comparison, larger cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have been available as ETFs since early this year.

However, it is essential to note that while submitting the S-1 is the initial phase of launching a fund, it may not have significant implications unless accompanied by a 19b-4 filing, which is necessary for a stock exchange to approve the listing of the new investment. Unlike the 19b-4, the SEC is not compelled to respond to the S-1 filing promptly, meaning approval could potentially take years, as seen in VanEck's previous attempts to introduce an ether ETF that only hit the market in July 2024.

Nate Geraci, president of the ETF Store, remarked on the importance of Bitwise's efforts, highlighting the firm's credibility in the crypto sector: "Bitwise is a credible crypto-native fund manager that approaches the market intelligently."

This development marks a pivotal movement in the ongoing evolution of cryptocurrency-related investment opportunities.