In a significant development for the cryptocurrency landscape, Bitwise has announced the launch of its spot XRP exchange-traded fund (ETF), which will begin trading on NYSE Arca under the ticker symbol “XRP” on Thursday. This marks the second ETF launch following last week’s debut of the Canary XRP ETF (XRPC).
Bitwise, a cryptocurrency fund manager managing approximately $15 billion in assets, characterizes this launch as a “historic moment” for XRP, the third-largest cryptocurrency by market capitalization. The firm expressed optimism about XRP’s potential to transform global payments, highlighting the ETF’s role in providing more accessible investment avenues for the asset.
To celebrate this milestone, Bitwise will host a live discussion on X Space featuring Ripple’s Chief Technology Officer, David Schwartz, alongside Bitwise Chief Investment Officer, Matt Hougan, and moderated by Eleanor Terrett. The discussion will cover various topics, including the evolution of XRP and Ripple, the implications of the ETF for the XRP community, the changing dynamics of traditional finance and global payments, as well as the broader future of digital assets.
In regulatory developments, the Bitwise XRP ETF has received auto-effective status following the submission of Form 8-A and CERT documents to the U.S. Securities and Exchange Commission (SEC). The ETF has been assigned a management fee of 0.34%, which Bitwise plans to waive for the first month on the initial $500 million in assets under management. The ETF aims to give investors direct exposure to XRP, which Ripple is positioning as a solution for modernizing global payment systems.
In related news, Bloomberg analyst James Seyffart reported that Grayscale’s XRP Trust ETF (GXRP) and Franklin Templeton’s XRP ETF (XRPZ) are set to launch on the upcoming Monday, adding to the growing interest in XRP-focused investment products.
Market response to the news has been mixed, with XRP experiencing significant volatility. Although its price initially plummeted by more than 9% to around $2 as long-term holders expressed concerns, it has since rebounded to approximately $2.12, characterized by trading ranges between $2.01 and $2.17. Trading volume surged by 30% over the past 24 hours, indicating heightened interest from traders in light of the ETF approvals.
In the derivatives market, recent data from CoinGlass highlighted notable selling activity, showing a slight uptick in overall XRP futures open interest, which rose 0.30% to $3.38 billion. Specific trading platforms exhibited varied performance; open interest for XRP futures on the Chicago Mercantile Exchange (CME) increased by 0.56%, while it decreased by 1.17% on Binance.
As Bitwise prepares for the launch of its ETF, all eyes are on the evolving landscape of XRP and its potential as a cornerstone in the digital asset ecosystem.
