SEC Acknowledges Bitwise’s Spot XRP ETF Filing, Joining Growing List
On Tuesday, the U.S. Securities and Exchange Commission (SEC) acknowledged the filing for Bitwise’s spot XRP exchange-traded fund (ETF) submitted by Cboe BZX Exchange. This marks the latest move in a series of filings from issuers aiming to capitalize on anticipated policy shifts toward crypto under the Trump administration. If approved, Bitwise’s spot XRP ETF would establish XRP as a legitimate investment vehicle, offering a regulated option to invest in the world’s third-largest cryptocurrency.
After publication in the Federal Register, the SEC will allow a 21-day comment period before deciding whether to approve, deny, or take further action, with a final decision expected within 240 days. This filing follows similar moves by other firms, with the SEC also acknowledging XRP ETF proposals from Grayscale and 21Shares, while filings from WisdomTree and Canary Capital remain under review.
The growing number of crypto ETF filings and the SEC’s responsiveness suggest that regulators are entering a new phase in embracing digital assets under the Trump administration.
The SEC’s decision will depend on public feedback and the filing’s alignment with its investor protection standards.
As of now, XRP is down by around 2.6%, trading at $2.56, according to CoinMarketCap, despite rising optimism about crypto ETFs.
The SEC is also reviewing Bitwise’s plan for managing the trust’s assets and mitigating risks of market manipulation. This includes measures such as sourcing XRP prices from U.S.-compliant trading platforms and implementing a creation and redemption process to help prevent fraud.
Following the successful launches of Bitcoin and Ethereum ETFs, the buzz around ETFs for other digital assets, including Litecoin, XRP, and Solana, has grown substantially.
Bloomberg ETF analysts James Seyffart and Eric Balchunas have given XRP ETFs a 65% chance of approval, reflecting a positive outlook for the product amid growing interest in crypto investment vehicles.
However, Katalin Tischhauser, Head of Research at Sygnum Bank, cautioned that not all tokens are suitable for an ETF.
“With much of the crypto market seen as speculative or hype-driven, healthy demand is needed for institutional investors to make an allocation,” Tischhauser told Decrypt.
She further explained that launching numerous ETFs without sufficient demand could disappoint the market, potentially harming the broader crypto industry.
“Tokens with lower volumes are subject to higher volatility, which could lead to larger losses than institutional investors are accustomed to,” she added. “This could reduce the demand for access to additional crypto assets.”
While there is growing interest in crypto ETFs, Tischhauser described their launch as a “double-edged sword”, emphasizing the need for careful consideration.
