Bitwise Launches XRP ETF on NYSE
Bitwise Asset Management has officially launched its highly anticipated XRP ETF on the New York Stock Exchange (NYSE), marking a major milestone for cryptocurrency investment products. This development opens up new opportunities for institutional investors looking to gain exposure to the third-largest cryptocurrency by market capitalization, XRP.
Fund Overview
The new XRP ETF will be traded under the ticker symbol "XRP" and offers US investors direct exposure to XRP, the cryptocurrency that powers the XRP Ledger. The XRP Ledger is a blockchain designed for fast and low-cost global asset settlements, making it a vital component of the blockchain ecosystem.
Incentives for Early Investors
To incentivize early participation, Bitwise has announced that it will waive fees on the first $500 million in assets under management (AUM) for the first month of trading. This fee waiver is designed to encourage investors to enter the market early without incurring any immediate costs.
Management Fees and AUM
The ETF charges an all-in management fee of 0.34%. At launch, the fund's AUM is estimated at approximately $2.3 million, contributed by market makers and authorized participants before the first trading day.
Matt Hougan's Remarks on XRP's Potential
“XRP has shown resilience and has a strong, active user base,” commented Matt Hougan, Chief Investment Officer at Bitwise. “We believe this asset has a bright future in the world of digital finance.”
Expanding XRP Investment Opportunities
This ETF is expected to expand the availability of XRP-focused investment products in the United States, as it allows investors to gain exposure to the asset through an exchange-traded vehicle. This offers a more accessible and regulated method of investing in XRP compared to previous options.
Bitwise’s move is seen as a significant step forward for cryptocurrency ETFs, especially in providing institutional investors with a secure and reliable way to invest in XRP.
Author's Summary: Bitwise’s launch of an XRP ETF on NYSE provides institutional investors with direct exposure to XRP, expanding investment opportunities and eliminating fees on initial assets to attract early participants.