Bitwise Launches Spot XRP ETF on NYSE
Bitwise Asset Management has introduced its Spot XRP exchange-traded fund on the New York Stock Exchange.
The ETF will commence trading on Thursday, under the ticker XRP. Notably, it will waive the management fee of 0.34% for the initial month for the first $500 million in assets.
“XRP is a very interesting asset for several reasons,” mentioned Bitwise CIO Matt Hogan. “It has been operational for a long time at very low costs, handles a significant volume of transactions, and has a robust community of supporters.”
XRP holds the position of the third largest non-stablecoin cryptocurrency globally, with a market cap of $127.3 billion. According to recent data, XRP has executed over 4 billion transactions and is making strides in the cross-border payments sector.
In the U.S., Bitwise’s fund becomes the second spot XRP product, following Canary Capital’s XRPC. Since its launch last week, Canary’s fund has amassed net inflows of $276.8 million. Previously, Bitwise had launched the Bitwise Physical XRP ETP (GXRP) in Europe, allowing investors direct, backed exposure to cryptocurrencies.
Grayscale is expected to follow suit, having announced earlier on Wednesday plans for its GXRP fund. Bloomberg analyst James Seifert also noted that Grayscale’s Spot XRP ETP could go live as early as next Monday, alongside a Dogecoin ETF, marking a first in that regard.
“The XRP ETF could debut as early as Monday the 24th. A lot is set to happen next week,” Seifert stated.
ETF Surge
Analysts have observed a recent surge in new ETFs tracking various altcoins in the U.S., with recent launches providing exposure to Solana, XRP, Litecoin, and Hedera.
Beyond the successful launches, the issuer is considering introducing funds that track the prices of Cardano, Avalanche, Polkadot, and other cryptocurrencies.
The rush to launch seems driven by recent SEC guidance clarifying the pathway for companies aiming to roll out crypto ETFs. As a result, issuers have started exploring alternative methods to introduce products without needing explicit governmental approval.
Excluding Bitcoin and Ether ETFs, the Solana Fund is exhibiting the strongest growth regarding new ETFs and total net inflows. Since their debut last October, six Spot Solana ETFs have emerged, with 21Shares’ TSOL launching earlier today. The Spot Solana ETF has gathered cumulative net inflows of $420.4 million to date.
