The race to list exchange-traded products (ETPs) based on cryptocurrency in the U.S. picked up steam as NYSE Arca sought approval to list the Bitwise 10 Crypto Index Fund (BITW).
The fund has BTC, ETH, SOL, and most importantly XRP, which makes up most of its assets in management ($1.24 billion).
On the 13 th of November, Bitwise announced it had submitted a 19b-4 with the U.S. Securities and Exchange Commission (SEC).
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The proposed structure of the exchange-traded product would permit the buying and selling of the fund at a net asset value (NAV) and receive other inherent benefits of extra regulation and efficiency if the product got approval.
Ripple CEO Celebrates Bitwise ETP Filing
Ripple CEO Brad Garlinghouse responded jokingly and with emotion. Adding XRP, Bitcoin, Ethereum and Solana to the mix he described as an “alphabet soup I love”
Garlinghouse’s response is a sign of increasing faith in this regard for XRP to have a position during institutional portfolios. This coincides with top companies’ strides to roll out XRP ETFs.
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The filing adds to the previous flows of institutional interest in XRP by sector participants like Bitwise. Others like 21Shares, Canary Capital, and Grayscale have also filed for XRP ETFs.
Bitwise first filed for an XRP ETF in October, followed quickly by Canary Capital and Grayscale. The growing attention shows XRP’s increasing appeal as an investable asset.
What’s Next for XRP?
An exchange-traded product is a regulated investment vehicle that tracks an underlying base asset, which allows investors to trade them on exchanges.
This could pull institutional interest, increase liquidity and add credibility to the fund, if Bitwise’s fund gets approved as an ETP.
Such a regulatory framework would afford the product more adoption as well, making it accessible to mainstream investors and establishing a stronger market presence.
XRP is gaining traction as a long term store of value, given its inclusion in major crypto funds which are geared towards institutional interest.
Although XRP only represents 1.9% of BITW, its inclusion in such a high-profile fund further boosts the cryptocurrency’s appeal in what has become a crowded marketplace.
The NYSE Arca filing is a form of an institutional adoption of digital assets. It’s uncertain whether or not the SEC will approve the application, but bullish sentiment surrounding crypto ETPs continues to rise as blockchain-powered assets are more integrated into traditional finance.
