Bitwise has taken an important step by filing for the very first Spot XRP ETF with the US Securities and Exchange Commission (SEC). The trust, registered in Delaware, aims to provide investors with direct exposure to the value of XRP, which will reflect the price of the coin minus operating costs. This marks an important step for the crypto space, but it raises an important question: is an XRP futures market necessary?
Bitwise files for First Spot XRP ETF
As one of the largest crypto asset managers, Bitwise has been behind several crypto ETFs and is now leading the charge for an XRP Spot ETF. In its filing, Bitwise highlighted that XRP holdings for the trust will be secured by Coinbase Custody Trust Company.
While this custodial service is not insured by the FDIC, private insurance does exist to provide protection, just like other Bitwise ETFs.
The application for the Spot XRP ETF was filed on October 2, marking a follow-up to the registration of the XRP ETF Trust in Delaware. This move has sparked excitement, but also some debate, as the SEC previously required a futures market to approve Bitcoin and Ethereum spot ETFs.
Will an XRP Futures Market Be Necessary?
In a recent interview on the Thinking Crypto podcast, SEC Commissioner Hester Peirce addressed the need for futures markets in ETF approvals. When asked if an XRP futures market is necessary, she said a spot ETF doesn’t always need one.
It depends on the specific product, but having a futures market has helped in understanding the underlying value, as seen with Bitcoin and Ethereum.
Peirce also noted that while Bitcoin and Ethereum benefited from the futures markets, that doesn’t mean every cryptocurrency needs one. Each case must be judged on its own, meaning XRP could potentially continue trading without a futures market in place.
As Bitwise leads this effort, the future of XRP’s market dynamics will be closely watched, especially with its ability to compete with larger assets like Bitcoin and Ethereum.
