Asset managers Bitwise and Grayscale have unveiled competitive fees for their proposed U.S. spot XRP exchange-traded funds, positioning them for a potential launch soon, expedited by a partial government shutdown and a unique regulatory pathway.
The firms are leveraging a “non-traditional” regulatory route. This allows their S-1 registration statements to become effective automatically after 20 days if no delaying amendments are filed and all listing standards are met. This approach bypasses the need for explicit approval from the U.S. Securities and Exchange Commission (SEC).
This strategy is particularly significant given the SEC’s historically cautious stance on XRP, stemming from a prolonged legal dispute with its issuer, Ripple. The current partial government shutdown in the U.S. is seen as potentially further accelerating this process by limiting the regulatory personnel available to file such amendments.
Bitwise has set an annual management fee of 0.34% for its Bitwise XRP ETF. Grayscale announced a 0.35% annual fee for its XRP ETF, which also applies to its Dogecoin ETF. These rates are considered competitive when compared to fees for other recently approved cryptocurrency ETFs, such as those tracking Solana.
Market experts are predicting substantial investor interest in these new products. Nate Geraci, President of NovaDius Wealth Management, expects the first spot XRP ETFs to launch within the next two weeks. He views their introduction as a definitive end to previous anti-crypto regulatory sentiments.
Matt Hougan, Chief Investment Officer at Bitwise, indicated that an XRP ETF could “easily become” a billion-dollar fund within its initial months of operation. Steven McClurg, Chief Executive Officer of Canary Capital, offered an even more optimistic forecast in August, predicting up to $5 billion in investments for XRP ETFs during their first 30 days.
XRP is currently the fourth-largest cryptocurrency by market capitalization. The impending approval and launch of these ETFs are widely anticipated to significantly increase liquidity and mainstream adoption for U.S. investors.
The enthusiasm for cryptocurrency ETFs is evident in recent market activity. Last week, Bitwise and Grayscale launched ETFs tracking Solana, with Bitwise’s fund attracting $56 million in inflows on its first day. This marked the largest debut for any ETF this year. Simultaneously, Canary Capital introduced funds tracking Litecoin and HBAR, further underscoring a wave of innovation in the crypto ETF sector.
Firms anticipate that these XRP products will be operational in the coming weeks, contingent on the final resolution of the SEC’s oversight.