Bitwise filed a registration statement with the SEC for its spot XRP ETF. The company announced that BNY will serve as the trust’s administrator. It also stated that Coinbase Custody Trust Company, LLC will be the custodian of the spot XRP ETF. Bitwise also claimed in its filing that XRP is not a security, going against what the SEC has said in the past. Amid these developments, one analyst gave an appetizing target for XRP Coin.
ETF issuer Bitwise takes action for XRP Coin!
Bitwise has filed a registration statement with the US SEC for an exchange-traded fund that will allow investors to invest in XRP. Some details stand out in the company’s S-1 filing on Wednesday. Accordingly, the company announced that BNY, the crypto index fund manager, will serve as the trust’s administrator. It also noted that Coinbase Custody Trust Company, LLC will be the custodian for the spot XRP ETF.
Meanwhile, it is worth noting that the SEC has never approved a spot XRP ETF before. Therefore, the approval of the ETF is likely to face difficulties. The legal battle between the SEC and Ripple is still ongoing. Because the SEC accuses Ripple of selling XRP, which it considers an unregistered security.
Bitwise: XRP Coin is not a security!
“The investment objective of the Trust is to provide exposure to the value of XRP Coin held by the Trust, net of expenses and other liabilities of the Trust’s operations,” the firm said in its registration statement. Bitwise also countered in its filing what the SEC has said in the past. In this context, the company claimed that XRP is not a security. Accordingly, Bitwise made the following statement:
XRP is a decentralized digital asset and its ownership is reflected in a decentralized ledger. Furthermore, XRP is not a security. It is therefore not subject to the protections of US federal securities laws.
Bitwise also mentioned the SEC’s lawsuit against Ripple
“If XRP is determined to be a security by a court or other regulatory agency, the Trust may be deemed an unregistered ‘investment company’ under the Investment Company Act of 1940,” Bitwise said, according to the registration statement. It is possible that this could require the liquidation of the Trust under the terms of the Trust Agreement.”
As you follow from Kriptokoin.com, some crypto ETFs started trading this year after the agency’s approval. The SEC approved several spot Bitcoin ETFs in January, including firms like BlackRock, Grayscale and Fidelity. Later, the agency also approved eight Ethereum ETFs.
Analyst: XRP Coin sees $3 milestone!
Bitwise’s latest move has fueled speculation on a potential rally in XRP price. During the day, the XRP Coin price rose by around 5% and surpassed the $0.62 level. However, it then started to lose altitude amid a wave of selling in the market. Thus, it fell as low as $0.585.
However, some analysts are quite hopeful about XRP’s future. A popular crypto analyst predicts that XRP will cross the $3 mark by Christmas. This led to speculation in the market. Having said that, the market is now expecting the XRP Coin price to go even higher in the coming days. However, time will tell whether this will materialize or not.
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