Bitwise Submits Registration to SEC for Spot XRP ETF

SUMMARY

Bitwise announced BNY as the trust’s administrator and Coinbase Custody Trust Company, LLC as the custodian for its spot XRP ETF.
In its filing, Bitwise claimed that XRP is not a security, challenging the SEC’s previous stance.

Bitwise has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) outlined to provide investors exposure to XRP. Concurring to the S-1 filing, BNY Mellon will act as the trust’s administrator, while Coinbase Custody Trust Company, LLC will be responsible for custody of the spot XRP ETF. Bitwise emphasized that the trust’s objective is to give exposure to XRP’s value, minus operating costs and liabilities, making it an alluring choice for those seeking to invest in the cryptocurrency.

Bitwise’s filing moreover challenged the SEC’s long-standing position by declaring that XRP is not a security, portraying it instead as a decentralized digital resource recorded on a decentralized ledger. This perspective pushes back against the SEC’s past claims that XRP is subject to U.S. federal securities laws. The SEC has been engaged in a legal fight with Ripple, charging the company of raising $1.3 billion through the sale of XRP, which the agency considers an unregistered security. Bitwise’s registration statement acknowledged that if XRP is classified as a security, the ETF could be forced into liquidation due to noncompliance with the Investment Company Act of 1940.

A spot XRP ETF has never been endorsed by the SEC, and if given the green light, it may confront legal obstacles. Bitwise highlighted that the result of the SEC’s case against Ripple might play a critical part in the future of the ETF. The company’s registration follows a recent filing for a separate entity, Bitwise XRP ETF, submitted to Delaware’s Division of Corporations, which recorded CSC Delaware Trust Company as its registered agent.

This filing comes as the SEC has already endorsed several crypto ETFs this year, including spot Bitcoin ETFs from firms like BlackRock, Grayscale, and Fidelity, along with eight Ethereum ETFs. If approved, the spot XRP ETF would be a critical advancement, further broadening the accessibility of crypto-based investment products in the U.S. market. Investors are closely observing to see how this new offering will affect the cryptocurrency scene, particularly given the regulatory uncertainties encompassing XRP.

The endorsement of the ETF may stamp a turning point in the ongoing talks over the classification of XRP, which remains under investigation.