In a bid to follow through with their plans to launch a product that may not necessarily need the approval of the U.S. Securities and Exchange Commission (SEC), both Bitwise and Grayscale have revealed the management fees for their proposed exchange-traded funds (ETFs) tracking XRP and Dogecoin. Over the weekend, Bitwise announced that the management fee for the Bitwise XRP ETF would be 0.34% while Grayscale revealed a 0.35% fee for the two ETFs of XRP and Dogecoin, according to their recent filings.
The companies releasing the fee schedule for the funds indicate that the listing of the ETFs is already underway despite the presence of regulatory barriers. It is reported that Grayscale is adopting the same route as that of their SOL ETF, which was launched last week without the official SEC approval. An insider familiar with the situation said the company might also list the XRP ETF in the same manner, thus making use of the already existing listing standards to go live.
Both Bitwise and Grayscale have been leaders in innovating crypto-based ETFs. Just last week, they both unveiled ETFs tracking the price of Solana (SOL), thereby accomplishing a feat that led to the inflow of $56 million on the very first day for Bitwise’s SOL ETF, which is the strongest debut of any ETF this year. In a like manner, asset managers such as Canary Capital are only recently coming out with funds anchored to Litecoin and HBAR, which is another clear signal of the institutional investors’ growing interests in the crypto space.
The insiders are citing this activity as the reason for the SEC’s part in a government shutdown scenario. In such a case, the middle-tier management and emergency protocols are left in charge of the limited staff, which is a direct consequence of the shutdown. Therefore, there is a significantly reduced window for execution of the already filed crypto ETF applications by the Office of the Commission. As a result, the crypto ETF issuers are taking steps to file via a different route.
Thanks to the new SEC directions published at the beginning of October, companies might file an S-1 registration statement without a postponing amendment, thus allowing ETFs to become effective after 20 days if the filings are in accordance with all listing standards. With this approach, companies are able to introduce products to the market at a much faster pace, which is the case even when there is no formal permission from the SEC.
Nate Geraci, the President of NovaDius Wealth Management, mentioned on X that the first spot XRP ETFs could be operational “within two weeks” and regarded the action as a signal moving away from a strict regulatory regime, which was the character of the SEC’s lengthy litigation against Ripple Labs.
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