In summary
- Ripple announced an investment in Bitwise’s physical XRP ETP, driving the price of XRP up 7.2% to $1.43.
- The GXRP ETP seeks to capitalize on the growing interest in cryptoasset exchange-traded products.
- The SEC’s lawsuit against Ripple could move forward following Gensler’s resignation in January, encouraging investor confidence.
Ripple has said it will invest in a new XRP ETP from Bitwise. The news has been a balm for the price of
Bitwise’s physical XRP ETP, which was previously called the European XRP ETP, is part of the company’s broad range of cryptoasset funds. The company also offers spot Ethereum and Bitcoin ETFs in the US.
Ripple CEO Brad Garlinghouse said the decision to invest in the Bitwise fund, which trades under the ticker GXRP, aligns perfectly with the surge in interest in exchange-traded products linked to cryptoassets.
“With the US regulatory environment for cryptocurrencies finally becoming clearer, this trend is set to accelerate, further driving demand for Cryptocurrency ETPs, like the Bitwise XRP Physical ETP,” he said in a statement from press. “As one of the most valuable, liquid and utility-oriented digital assets, XRP is at the forefront of this momentum, standing out as a cornerstone for those looking to access assets that are resilient and have real-world utility.”
Ripple has been extremely careful over the years to emphasize that it is not the issuer of XRP. The Ripple Network uses XRP as its native cryptocurrency for international money transfers and currency exchanges. The legality and security status of XRP remains the subject of what is now a four-year-old Securities and Exchange Commission lawsuit.
Last week the price of is scheduled to be inaugurated for his second term. Investors seem confident that an SEC without Gensler will lead to a faster conclusion in the lawsuit.
In addition to the legal news, there has also been growing interest from other firms in bringing an XRP exchange-traded fund to the US.
Just earlier this week, WisdomTree filed with the SEC to register an XRP ETF.
Documentation filed with the state of Delaware is the first step in obtaining approval for said product. WisdomTree will have to file paperwork with Wall Street’s main regulator, the Securities and Exchange Commission (SEC), for the process to officially begin.
Edited by Stacy Elliott.
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