Bitwise Asset Management will debut its spot XRP exchange-traded fund on the New York Stock Exchange on Thursday. The product will be listed under the ticker XRP, carrying a 0.34% management fee, with the first month and the first $500 million in assets being free of the fee. The announcement comes as a direct result of rapid growth of altcoin-centric ETFs in the US after the SEC released its new guidance for the filing of crypto ETFs.
Bitwise CIO Matt Hougan mentioned that they chose XRP for the new ETF among other assets due to its long-standing history, low fees of transactions and a large number of active users. XRP is the third-largest non-stablecoin crypto asset, with a market cap of $127.3 billion, and has carried out more than 4 billion transactions, thus setting itself up as a formidable player in the international cross-border payments market.
Bitwise is already giving its European investors access to XRP through the Bitwise Physical XRP ETP (GXRP), which is a physically-backed product. In the US, the new Bitwise fund is the second spot XRP initiative to come into the market, therefore, Canary Capital’s XRPC is the only one that has been able to draw a total of $276.8 million in net inflows since last week, its debut.
The next one to enter the race is Grayscale, whose GXRP fund could be up and running as early as Monday, local time, says Bloomberg analyst James Seyffart. The company might as well start a Dogecoin ETF on the same day, thereby making it the first in the U.S., Seyffart said. Along with this, he also mentioned that Franklin Templeton’s XRP ETF could be up and running on Nov. 24, thus adding to the congestion of rollout schedules for the coming week.
The present wave of ETF launches comprises products that provide exposure to Solana, Litecoin, XRP, and Hedera, while the issuers are requesting the green light for funds related to Cardano, Avalanche, and Polkadot.
The updated SEC guidance has allowed companies to take alternative filing routes, thus product launches can be done at a faster pace without the need for an explicit approval. In particular, the Solana ETFs have gained a lot of traction with six spot funds now available for trading and a combined $420.4 million in net inflows.
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