The cryptocurrency investment landscape is evolving rapidly, and a major milestone has just been reached. Bitwise, a leading crypto asset manager overseeing more than $4.5 billion in digital assets, has officially filed with the U.S. Securities and Exchange Commission (SEC) to launch the first XRP exchange-traded fund (ETF). This move marks a significant step toward broader institutional adoption of XRP, the seventh-largest cryptocurrency by market capitalization, which currently boasts a valuation exceeding $30 billion.
Bitwise submitted a Form S-1 registration statement to the SEC, initiating the formal process for what would be the industry’s first spot XRP ETF. Unlike futures-based funds, a spot ETF directly holds the underlying asset—meaning investors would gain exposure to real-time price movements of XRP. This filing follows Bitwise’s successful entries into the spot bitcoin and ethereum ETF markets, reinforcing its position as a pioneer in regulated crypto investment products.
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Why an XRP ETF Matters
XRP has long been one of the most recognized digital assets, particularly due to its integration in cross-border payments through Ripple’s blockchain technology. Despite years of regulatory uncertainty stemming from the SEC’s 2020 lawsuit against Ripple Labs, XRP has maintained strong market presence and investor interest.
Hunter Horsley, CEO of Bitwise, emphasized the strategic importance of this filing:
"XRP is one of the most enduring, well-known assets in the space and is also recognized among mainstream investors. At Bitwise we’ve always aimed to help investors access the opportunities in the space, and we’re excited to continue that work with our filing for a Bitwise XRP ETP."
This statement underscores a growing belief that XRP’s utility and longevity justify inclusion in regulated financial products—even amid ongoing legal ambiguity.
Regulatory Hurdles Ahead
While the filing is a critical first step, approval is far from guaranteed. The SEC has historically exercised caution when evaluating crypto-based ETFs, especially those involving tokens whose classification as securities remains contested.
The outcome of the Ripple litigation plays a pivotal role here. In a landmark ruling last year, Judge Analisa Torres determined that while Ripple’s institutional sales of XRP constituted unregistered securities offerings, its programmatic (retail) sales did not. This partial victory suggested that XRP itself may not be inherently a security—a distinction that could support ETF approval.
However, the SEC has until October 7, 2025, to decide whether to appeal this ruling. If it does, the legal status of XRP could remain uncertain for months or even years, likely complicating any decision on an ETF.
Other firms are also exploring similar paths. Canary Capital, a new investment firm founded by Steven McClurg—co-founder and former CIO of Valkyrie Funds—has incorporated an XRP ETF entity in Delaware. While no formal SEC filing has yet been confirmed, this signals growing institutional interest in XRP-based financial products.
The Bigger Picture: Institutional Adoption Gains Momentum
The broader trend points to increasing institutional acceptance of digital assets. Since January 2025, spot bitcoin ETFs have attracted over $17 billion in net inflows, demonstrating strong demand for regulated crypto exposure. Ethereum ETFs have followed suit, further validating the model.
Bitwise’s acquisition of ETC Group, a major European issuer of crypto exchange-traded products, strengthens its global footprint and regulatory expertise—key assets in navigating complex approval processes.
An approved XRP ETF would offer several advantages:
- Accessibility: Allows traditional investors to gain exposure without managing private keys or using crypto exchanges.
- Transparency: Regular reporting and oversight enhance trust compared to unregulated platforms.
- Liquidity: Integration into mainstream brokerage platforms increases trading volume and market stability.
- Diversification: Provides portfolio managers with another tool to hedge or speculate within the digital asset class.
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FAQ: Understanding the Bitwise XRP ETF Filing
Q: What is a spot XRP ETF?
A: A spot ETF holds actual XRP tokens and tracks their real-time market price. It differs from futures-based ETFs, which rely on derivative contracts rather than direct ownership.
Q: Why is this filing significant?
A: It’s the first formal attempt to bring XRP into the regulated U.S. financial system via an ETF. Approval could legitimize XRP as an investable asset class and open doors for other altcoin ETFs.
Q: Will the SEC approve the Bitwise XRP ETF?
A: There’s no guarantee. The decision hinges on whether the SEC views XRP as a security. The upcoming appeal deadline in the Ripple case (October 7, 2025) will heavily influence this assessment.
Q: How does this compare to bitcoin and ethereum ETFs?
A: Bitcoin and ethereum were deemed non-securities by the SEC, facilitating their ETF approvals. XRP’s status is less clear-cut due to ongoing litigation, making regulatory approval more complex.
Q: Can I invest in XRP through existing products?
A: Not yet in the U.S. via ETFs. However, Grayscale launched an XRP Trust in 2025, offering indirect exposure—though it trades at a premium and isn’t as liquid as an ETF would be.
Q: What happens if the SEC rejects the application?
A: Bitwise could revise its proposal, wait for clearer regulation, or pursue listings in more crypto-friendly jurisdictions. Rejection wouldn’t end efforts but might delay U.S. availability.
Looking Ahead: The Path to Approval
The road to ETF approval typically spans several months and involves public comment periods, amendments to filings, and rigorous scrutiny from regulators. Bitwise’s experience with prior approvals gives it an edge, but XRP’s unique regulatory challenges mean this process will be closely watched by investors, legal experts, and policymakers alike.
If approved, the Bitwise XRP ETF could become a cornerstone product for crypto-native and traditional investors seeking diversified exposure to digital assets beyond bitcoin and ethereum.
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Final Thoughts
Bitwise’s bold move to file for an XRP ETF reflects growing confidence in both the asset’s resilience and the maturation of crypto regulation. While hurdles remain, particularly around classification and legal clarity, this filing represents a crucial step toward full financial integration for one of the longest-standing cryptocurrencies.
As institutional demand rises and regulatory frameworks evolve, products like the proposed Bitwise XRP ETF could redefine how investors interact with digital assets—making them safer, more accessible, and more aligned with traditional finance.
Whether 2025 becomes the year XRP finally gains its place on Wall Street depends largely on decisions now being weighed in Washington. But one thing is clear: the momentum behind regulated crypto investing is unstoppable.