Asset manager Bitwise updated its S-1 registration statement on October 16, aiming to launch a compliant XRP exchange-traded fund (ETF). The new details in the filing focus on the Trust’s structure, asset custody, and share creation and redemption processes. This move follows the initial October 2 registration, marking a significant step toward offering an investment product tied to Ripple’s XRP.
Additionally, Bitwise’s establishment of a ‘Bitwise XRP ETF‘ entity in Delaware suggests strategic positioning ahead of November’s elections. Such maneuvers may reflect the firm’s navigation through the political and regulatory frameworks influencing the cryptocurrency sector.
Higher levels of security measures are proposed concerning the new ETF in the revised document. It defines what the XRP Custodian will do regarding holding assets using cold storage instead of keeping them in hot storage for too long. This setup guarantees that assets are held independently of other assets belonging to the custodian, thereby increasing the security of the private keys. In addition, Bitwise’s Prime Execution agent will effectively oversee all the XRP trading on platforms such as Bitstamp, Kraken, Coinbase, and LMAX.
Also Read: Ripple and SEC Prepare for Lengthy Appeal Process Expected to Extend into 2026
Advertisement
Growing Interest in XRP ETFs and Regulatory Challenges
Interest in XRP ETFs is climbing, and authorities have approved their listing on three indexes. Following Bitwise’s lead, Australia-based Canary Capital also sought SEC approval for an XRP ETF, citing a shift in regulatory attitudes and rising investor interest. However, SEC approval for these ETFs remains uncertain due to Ripple’s ongoing litigation and the ambiguous status of XRP.
In the document filed by Bitwise, the outcomes are outlined if XRP is recognized as a security and, thus, can force the Trust to sell all the XRP it holds. However, these measures are not stopping Bitwise from pursuing its course, which shows the company’s determination to present the public with a regulated investment option with XRP.
Conclusion
With this updated filing, Bitwise not only reaffirms its dedication to launching an XRP ETF but also reflects a broader trend within the digital asset management industry. This development highlights the sector’s efforts to comply with and anticipate shifts in regulatory expectations, aiming to broaden investor access to emerging digital assets.
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.