Bitwise Asset Management has announced the launch of its spot XRP exchange-traded fund (ETF), set to begin trading on the New York Stock Exchange under the ticker symbol XRP. The ETF will officially start trading on Thursday, featuring a management fee of 0.34%, which will be waived for the first month on the initial $500 million in assets.
Matt Hougan, Chief Investment Officer at Bitwise, highlighted the unique attributes of XRP, stating, “XRP is a really intriguing asset for several reasons. It has operated successfully for a very long period of time at extremely low cost, it processes high transaction volumes, and it has a really strong and vibrant community of supporters.” Currently, XRP stands as the world’s third-largest non-stablecoin cryptocurrency with a market capitalization of $127.3 billion, having facilitated over 4 billion transactions. Its competitive positioning in the cross-border payments market further accentuates its significance.
In the U.S., Bitwise’s offering marks the second spot XRP ETF, following Canary Capital’s XRPC, which has garnered $276.8 million in net inflows since its launch just a week prior. Bitwise also previously introduced the Bitwise Physical XRP Exchange-Traded Product (ETP) in Europe, aimed at providing investors with direct, physically-backed exposure to the cryptocurrency.
Looking ahead, Grayscale has announced that its GXRP fund is expected to launch shortly. Bloomberg analyst James Seyffart mentioned on social media that Grayscale’s spot XRP ETP could go live next Monday, alongside a first-ever Dogecoin ETF. Additionally, Seyffart suggested that Franklin Templeton’s XRP ETF might also launch around the same time, indicating a busy week for new financial products in the crypto space.
The recent surge in ETF launches reflects a broader trend in the United States, with numerous new products tracking various alternative cryptocurrencies. Recent offerings have included ETFs for Solana, XRP, Litecoin, and Hedera. Alongside successful launches, issuers are pursuing funds that will track the performance of other cryptocurrencies like Cardano, Avalanche, and Polkadot.
This recent wave of ETFs has likely benefited from the Securities and Exchange Commission’s new guidance, which has clarified procedures for firms seeking to roll out crypto ETFs. This has allowed issuers to adopt alternative pathways to introduce products without needing explicit approval from the regulatory body. Among cryptocurrencies, Solana has seen significant momentum, with six spot Solana ETFs launched since late October, accumulating a combined net inflow of $420.4 million to date.
As the landscape of cryptocurrency ETFs continues to evolve, the recent developments indicate a growing acceptance and interest in diverse digital assets, setting the stage for further innovations in the financial sector.
Disclaimer: The information provided here is for informational purposes only and should not be construed as legal, tax, investment, financial, or other advice.
