Bitwise Launches XRP ETF Thursday Amid Altcoin Fund Surge
Bitwise Asset Management has announced the introduction of a new spot XRP exchange-traded fund (ETF) on the New York Stock Exchange. This ETF is set to commence trading on Thursday, under the ticker symbol XRP. The fund features a management fee of 0.34%, which will be waived for the first month on the initial $500 million in assets.
Key Details of the XRP ETF Launch
According to Bitwise Chief Investment Officer Matt Hougan, XRP presents an attractive investment opportunity for several reasons. He highlighted its long-term performance, low operational costs, high transaction volumes, and a robust community of supporters. Currently, XRP ranks as the third-largest non-stablecoin cryptocurrency globally, boasting a market capitalization of $127.3 billion, based on data from The Block’s price dashboard.
XRP’s Impact on Cross-Border Payments
With over 4 billion transactions facilitated, XRP is positioning itself to challenge the cross-border payments sector. In the United States, this offering marks the second spot XRP product available, following Canary Capital’s XRPC fund, which has garnered $276.8 million in net inflows since its inception last week.
Previous Initiatives and Upcoming Launches
Bitwise is not new to the cryptocurrency space; it previously launched the Bitwise Physical XRP ETP (GXRP) in Europe, offering investors direct, physically-backed exposure to XRP. Grayscale is also expected to launch its own spot XRP ETP shortly. Bloomberg analyst James Seyffart has reported that Grayscale’s GXRP fund is anticipated to go live next Monday, accompanied by a Dogecoin ETF, marking a potentially historic moment in the ETF landscape.
Upcoming Events
- Bitwise XRP ETF launching on Thursday.
- Grayscale’s GXRP fund expected to launch next Monday.
- Possible launch of Franklin Templeton’s XRP ETF on Monday, the 24th.
The Surge of Altcoin ETFs
The recent surge in new ETFs focusing on various altcoins has been notable. Several recent launches have provided investors with exposure to cryptocurrencies such as Solana, XRP, Litecoin, and Hedera. Furthermore, issuers are actively seeking to create funds that track additional cryptocurrencies like Cardano, Avalanche, and Polkadot.
Securities and Exchange Commission Guidance
This increase in ETF offerings appears to be influenced by new guidance from the Securities and Exchange Commission (SEC), which has clarified procedures for launching crypto ETFs. This new pathway has allowed issuers to introduce products without requiring explicit approval from the agency.
Solana ETF Growth
Outside of Bitcoin and Ether, Solana funds have gained significant momentum, with six spot Solana ETFs currently available since the first was launched in late October. The total net inflow for these Solana ETFs has reached approximately $420.4 million.
