Bitwise Asset Management has filed with the US. Securities and Exchange Commission (SEC) for the first spot XRP ETF in the country. If approved, the ETF will give investors direct exposure to XRP’s value through a trust, providing an easier way to invest in the asset without holding it directly.
The XRP held by the trust will be managed by Coinbase Custody Trust Company, which handles Bitwise’s other crypto ETFs. However, the custodian is not insured by the Federal Deposit Insurance Corporation (FDIC). Bitwise CEO Hunter Horsley stated the company is excited to continue expanding investor access to the crypto space with this new filing.
Ripple (XRP) Faces Market Pressure Despite ETF Optimism
Despite the potential for a US.-based spot XRP ETF, XRP’s price fell by 6% on Oct. 2, trading at $0.5551. Technical analysis reveals that the Moving Average Convergence Divergence (MACD) indicator shows negative momentum, with the MACD line crossing below the signal line. This signals the possibility of XRP falling to the 50-day Exponential Moving Average (EMA) at $0.5461.
XRP could face an 11.9% decline, potentially reaching its Sept. 6 low of $0.5026 if bearish momentum continues. A daily close above $0.5946, however, might reverse the trend, offering a rally toward the $0.6602 resistance, representing the 50% Fibonacci retracement of the decline from July 2023’s high.
Meanwhile, in the derivatives market, XRP’s outlook appears bleak, with trading volume plunging 42.66% to $2.82 billion. Open interest also fell by 13.93%, settling at $728.97 million.
Bitwise Expands Its Crypto ETF Portfolio
The Spot XRP ETF filing comes after Bitwise launched its spot Bitcoin ETF in Jan. and its Ether ETF in July. The XRP filing, submitted just after forming a spot XRP ETF Trust in Delaware, signals Bitwise’s intent to broaden its presence in the U.S. market.
Nate Geraci, president of the ETF Store, called the spot XRP ETF filing “strategic,” noting that Bitwise doesn’t make such moves lightly. He hinted that this could align with expected regulatory changes in Nov.
Ripple, the company behind XRP, also announced in-principle approval for a license from Dubai’s Financial Service Authority on Oct. 1. This will allow Ripple to offer cross-border payment services in Dubai’s financial hub.
If the SEC approves Bitwise’s Spot XRP ETF filing, it could be a major step toward further institutional adoption of XRP in the U.S.
