The parade of crypto exchange-traded funds continues. This time, it’s XRP’s turn to get the Wall Street treatment. Bitwise Asset Management just announced its spot XRP ETF will begin trading on the New York Stock Exchange this Thursday.
- Bitwise Asset Management is launching a spot XRP ETF on the NYSE this Thursday, signaling growing institutional interest in crypto assets beyond Bitcoin. This ETF provides traditional investors a simple way to gain exposure to XRP without managing private keys.
- Bitwise’s CIO cited XRP’s longevity, low transaction costs, and high volume capacity as reasons for launching the product. XRP currently ranks as the third-largest cryptocurrency by market capitalization when stablecoins are excluded.
- The launch follows similar products from Canary Capital and signals a broader trend of U.S. issuers rapidly introducing altcoin ETFs, driven partly by clearer SEC guidance. Solana has been the most successful altcoin ETF performer recently.
It’s another sign that the financial world’s appetite for crypto extends well beyond Bitcoin. The fund will trade under the ticker XRP, which is about as straightforward as it gets. For investors, this offers a familiar package to buy and hold a digital asset without managing private keys or using a crypto exchange.
Bitwise is setting the management fee at 0.34%. They’re also waiving that fee for the first month on the first $500 million of assets. It’s a classic move to attract early capital and build momentum right out of the gate.
So, why XRP? It’s a fair question, given the coin’s long and sometimes complicated history. Matt Hougan, the Chief Investment Officer at Bitwise, sees a few clear reasons. He calls XRP a “really intriguing asset.”
In a statement, Hougan pointed to its longevity and efficiency. “It has operated successfully for a very long period of time at extremely low cost,” he said. He also highlighted its ability to handle high transaction volumes and its dedicated community of supporters.
The numbers back up some of this confidence. According to The Block’s data, XRP is the third-largest cryptocurrency if you set aside stablecoins. It boasts a market capitalization of $127.3 billion. And with over four billion transactions processed, it has a track record few other projects can claim.
The core idea behind XRP has always been to improve cross-border payments. It aims to be a faster, cheaper alternative to the traditional systems banks have used for decades. This ETF is, in a way, a bet that this mission still has legs.
A Crowded Field Forms
Bitwise isn’t the first to this party, though. They are the second firm to launch a spot XRP product in the United States. Canary Capital’s XRPC fund beat them to the punch, launching just last week. It has already pulled in a respectable $276.8 million in net inflows.
This shows there’s immediate demand. And more competition is lining up at the door. Grayscale, a giant in the crypto fund space, announced that its own XRP fund is set to launch soon. The race is officially on.
Bloomberg analyst James Seyffart, who keeps a close eye on these developments, offered his own timeline. He expects Grayscale’s spot XRP product could go live as soon as next Monday. He also mentioned Grayscale’s Dogecoin ETF might launch the same day, which would be a first for that particular coin.
Seyffart didn’t stop there. He suggested another major player, Franklin Templeton, could also join the fray next week.
And I think the [Franklin Templeton’s] XRP ETF could go live on Monday the 24th as well. Lots happening next week
— James Seyffart (@JSeyff) June 19, 2024
What we’re seeing is a rapid acceleration. The success of the spot Bitcoin ETFs earlier this year seems to have convinced issuers that investors are ready for more. They are moving quickly to offer exposure to a wider range of digital assets.
The Great Altcoin Rush
This isn’t just an XRP story. It’s part of a much broader trend. The U.S. market is suddenly seeing a flurry of new ETFs tracking various altcoins. We’ve seen recent launches for Solana, Litecoin, and Hedera.
And the pipeline is full. Issuers are already working on funds that would track the prices of Cardano, Avalanche, Polkadot, and others. It feels like every project with a significant market cap is a potential candidate for an ETF wrapper.
What changed? A big part of this rush seems to stem from recent guidance from the Securities and Exchange Commission. The agency clarified the procedures for firms wanting to roll out crypto ETFs. This has given issuers a different path to launch these products, one that doesn’t require an explicit, case-by-case sign-off from the agency.
It’s less of a permission slip and more of a clear rulebook. For financial firms, that predictability is gold. It reduces uncertainty and allows them to plan product launches with more confidence.
Among the non-Bitcoin and non-Ether funds, Solana has been the clear winner so far. It has seen the strongest momentum, both in the number of new ETFs and in total capital flowing in. There are now six spot Solana ETFs trading since the first one appeared in late October.
Just today, 21Shares’ TSOL fund went live. All told, these spot Solana ETFs have gathered a combined total of $420.4 million in net inflows. That’s a significant amount of capital for a single altcoin in a relatively short period.
For years, the main way for traditional investors to get crypto exposure was through a handful of Bitcoin or Ethereum products. Now, the menu is expanding rapidly. The question is no longer if Wall Street will embrace altcoins, but which one they will package up next.
