Bitwise Updates XRP ETF Registration: SEC’s Approval Uncertain

• Bitwise has filed the revised S-1 registration statement with the SEC on October 16.
• The filing clarifies the trust’s structure, asset custody & procedures for creating & redeeming shares.
• Considering the regulatory pressures surrounding XRP, the SEC’s ETF approval remains uncertain.

Asset manager Bitwise filed an updated S-1 registration statement for its XRP exchange-traded fund (ETF) on October 16. The revised statement provides more details on the trust’s structure, asset custody, and share creation and redemption procedures. This move underscores the firm’s commitment to launch a compliant investment product for Ripple’s XRP.

Bitwise’s updated S-1 registration follows its initial filing on October 2, which marked the asset manager’s first step toward launching an XRP ETF. The firm also applied for a “Bitwise XRP ETF” entity with Delaware’s Division of Corporations. Crypto experts like Nate Geraci have suggested this could be a political strategy ahead of the November election.

The updated filing outlines Bitwise’s security measures for its proposed XRP-based ETF. The XRP Custodian will store the Trust’s assets in secure cold storage, transferring only limited amounts to hot storage for share creation and redemption. Assets will be held separately from the custodian’s other holdings, with strong protection for private keys. In addition, Bitwise’s Prime Execution agent will handle XRP trades across various platforms, including Bitstamp, Kraken, Coinbase, and LMAX.

Growing Interest in XRP ETFs

Bitwise’s push to launch an XRP ETF comes amid growing interest in XRP. Following Bitwise’s lead, Australia-based Canary Capital filed an application with the Securities and Exchange Commission (SEC) for an XRP ETF. The firm cited “signs of a more progressive regulatory environment and growing demand from investors.”

Read also: Ripple’s RLUSD Distribution Revealed: $34.8 Million on XRPL, $12.6 Million on Ethereum

However, SEC approval for these ETFs remains uncertain. Regulatory uncertainty around XRP and the ongoing Ripple lawsuit pose challenges. Bitwise’s updated filing acknowledges the regulatory pressures surrounding XRP, especially after the SEC’s recent appeal. The firm stated that if XRP is classified as a security, the Trust may have to liquidate its XRP holdings. Despite these hurdles, Bitwise is moving forward.