A quiet but significant shift is happening in the world of crypto investments. Two major players, Bitwise and Grayscale, have just laid out the fee structures for their proposed exchange-traded funds, or ETFs, that track the prices of XRP and Dogecoin. This move signals a determined push to bring these products to market, even without the usual explicit nod from the U.S. Securities and Exchange Commission.
- Major crypto investment firms Bitwise and Grayscale are launching ETFs for XRP and Dogecoin by disclosing their fee structures, aiming to bring these products to market without direct SEC approval.
- This strategy leverages a “non-traditional route” enabled by recent SEC guidance and the government shutdown, allowing firms to launch ETFs after a 20-day review period without a “delaying amendment.”
- This development is seen as a significant shift in crypto regulation, potentially marking a turning point for crypto assets in the U.S. and paving the way for broader integration into mainstream investing.
It’s a bit like setting up your stall at the market before the official opening bell, but with a clever reading of the rules. Bitwise announced a 0.34% fee for its Bitwise XRP ETF over the weekend. Not to be outdone, Grayscale followed up on Monday, disclosing a 0.35% fee for its XRP ETF. Grayscale also revealed the same 0.35% fee for its Dogecoin ETF.
These aren’t the first such ventures. Just last week, both Bitwise and Grayscale launched ETFs that follow the price of Solana (SOL). Those launches brought in millions of dollars, showing a real appetite from investors. Bitwise’s SOL ETF alone pulled in $56 million on its first day, marking the biggest ETF debut of the year so far. Canary Capital also joined the fray, launching funds for Litecoin and HBAR.
A New Path to Market
The interesting part here is how these firms are getting these products listed. They’re taking what some call a “non-traditional route.” Grayscale, for instance, is using the same strategy it employed for its SOL ETF. This means the XRP ETF could also go live without the SEC’s direct approval. It’s a bold play, certainly, and one that has many of us watching closely.
You might wonder how this is even possible. Doesn’t the SEC need to sign off on everything? Well, the current situation in Washington provides a unique backdrop. The U.S. government has been close to its longest shutdown in history. This leaves the SEC operating with a skeleton crew, following a specific shutdown plan that severely limits what staff can work on.
Before the shutdown, the agency did approve new listing standards for exchanges. These standards essentially paved the way for dozens of crypto ETF applications to move forward more quickly. It was a subtle but important change, perhaps not fully appreciated at the time.
Then, about a week after the government shut down on October 1, the SEC issued further guidance. This clarified procedures for firms looking to go public. The key takeaway was that firms could file an S-1 registration statement without what’s called a “delaying amendment.”
What does a delaying amendment do? It gives the SEC extra time, beyond the standard 20 days, to review comments and make changes before an ETF goes into effect. Without it, if an S-1 filing is final and meets all listing standards, the ETF can simply go live after 20 days. Any changes, of course, restart that 20-day clock.
So, when you combine a skeleton crew at the SEC, new listing standards, and guidance allowing S-1 filings without delaying amendments, you get a situation where firms can potentially launch their crypto ETFs without the SEC’s explicit “green light.” It’s a testament to finding opportunity in the fine print.
What This Means for the Future
This approach has some market watchers quite excited. Nate Geraci, President of NovaDius Wealth Management, shared his thoughts recently. He believes we could see the first spot XRP ETFs launch very soon.
“Sometime in next two weeks, I expect launch of first spot xrp ETFs,” Geraci said on X. He added, “SEC had open litigation against Ripple for past five years, up until three months ago. IMO, launch of spot xrp ETFs represents final nail in coffin of previous anti-crypto regulators.”
That’s a strong statement, suggesting a turning point for how crypto assets are viewed and regulated in the U.S. For years, the regulatory landscape has been a source of uncertainty for many crypto projects. A more direct path to market for these investment products could signal a significant shift in that dynamic.
The ability to launch these ETFs, even under these unique circumstances, shows a growing maturity in the crypto market. It also highlights the ingenuity of firms working within existing frameworks. Investors now have more options to gain exposure to digital assets through traditional investment vehicles, which can feel less intimidating than direct crypto purchases.
This development could open doors for other digital assets to follow suit. It suggests a future where the line between traditional finance and the crypto market becomes even blurrier. We are watching a fascinating chapter unfold, one where regulatory nuances and market demand are creating new pathways for crypto’s integration into mainstream investing.
