Cryptocurrency index fund manager Bitwise has filed for a spot exchange-traded fund that will provide investors with exposure to tokens. XRP
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“We can confirm that this is our registration,” Matthew Hougan, Bitwise’s chief investment officer, told The Block Tuesday. “Registering a trust corporation in Delaware. I can share more details and comments tomorrow.”
Documents for an entity called Bitwise XRP ETF, with CSC Delaware Trust Company as its registered agent, were filed Monday with the Delaware Department of State’s Department of Corporations.
A spot XRP ETF has never previously been approved by the U.S. Securities and Exchange Commission, and would likely face challenges if approved. The SEC is embroiled in a legal battle with Ripple. After the agency accused the company of raising $1.3 billion through the sale of XRP, which is considered an unregistered security.
Several cryptocurrency ETFs began trading this year after receiving institutional approval. SEC Approved Several spot Bitcoin ETFs launched in January, including from companies like BlackRock, Grayscale, and Fidelity. Later, the agency Approved 8 Ethereum ETFs.
Meanwhile, Grayscale said it has the following plans: start This is an XRP “closed-end” fund for accredited investors.
ETP vs ETF
The SEC often uses the term exchange-traded products (ETPs) when discussing these products.
Last month, an SEC official pointed out that the term exchange-traded fund had been “misused.”
“When we talk about spot Bitcoin ETPs, it is a commodity that is traded on an exchange,” said Natasha Vij Greiner, director of the SEC’s Division of Investment Management. Georgetown University Financial Market Quality Conference, September 17.
“They’re not really subject to the Investment Company Act of 1940 and they’re not Act 40 products, so they don’t have the same protections and considerations around storage that we’re wrestling with.” “Greiner added.
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