Bitwise has made a major move by filing for the first-ever Spot XRP ETF with the U.S. Securities and Exchange Commission (SEC). The trust, registered in Delaware, will give investors direct exposure to XRP’s value, tracking its price minus operational costs.
This is a big step for the crypto world, but it raises an important question: Is an XRP futures market even necessary? Ripple news outlets are already buzzing with this development.
As one of the largest crypto asset managers, Bitwise has been behind several cryptocurrency ETFs and is now leading the charge for an XRP Spot ETF. According to its filing, XRP holdings for the trust will be kept safe by Coinbase Custody Trust Company. Although this service isn’t insured by the FDIC, private insurance is in place, as with other Bitwise ETFs.
The application for the Spot XRP ETF, filed on October 2, follows the registration of the XRP ETF Trust in Delaware. While this move has excited many, it has also sparked debate. In the past, the SEC has required a futures market for Bitcoin and Ethereum spot ETFs, so there are questions about whether XRP will face the same requirement.
In a recent Thinking Crypto podcast interview, SEC Commissioner Hester Peirce was asked if an XRP futures market is necessary for the ETF. Peirce explained that a spot ETF doesn’t always need a futures market.
It depends on the specific product, but having a futures market has helped in understanding the underlying asset, as seen with Bitcoin and Ethereum.
While Bitcoin and Ethereum have benefited from futures markets, Peirce noted that not every cryptocurrency needs one. She emphasized that each case should be reviewed on its own, which suggests XRP could move forward without requiring a futures market.
As Bitwise leads this effort, the future of XRP’s market dynamics will be closely watched, especially with the possibility of competing with larger assets like Bitcoin and Ethereum.
Share your thoughts on Bitwise’s bold move. Will this spark a new era for XRP?
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