Bitwise XRP ETF to Launch on Thursday: Bitwise calls it a “Historic Moment”

Bitwise has confirmed its launch of the spot XRP ETF on Thursday, November 20, on the New York Stock Exchange (NYSE) under the ticker symbol “XRP.” This ETF launch comes a week after the Canary XRP ETF (XRPC). Bitwise claims it to be a historic moment for XRP, which is the third-largest crypto asset.  The management fee for the ETF is 0.34%, but this fee is waived for the first month on the first $500 million in assets. 

With this launch, Bitwise has expanded to the altcoin ETF markets, providing institutional-grade exposure to XRP with regulated trading access on the NYSE.

Other Details of Bitwise XRP ETF 

The ETF fees, which cover management, administration, custody, legal, and record-keeping costs, have been waived fr the first month of the launch. The Bitwise XRP ETF uses the standard authorized participant (AP) mechanism for creation and redemption of shares. APs create ETF shares by delivering a basket of XRP and/or cash to the issuer in exchange for creation units (large blocks of shares). Similarly, APs redeem shares by exchanging creation units for an equivalent basket of XRP and/or cash. These shares are tax-efficient and ensure ETF liquidity.

How Might the Bitwise XRP ETF Launch Affect XRP Price and Liquidity?

The Bitwise spot XRP ETF is expected to have a positive impact on XRP price and liquidity as it will enhance institutional access and capital inflow. ETFs provide a regulated and convenient way for institutions and traders to gain exposure to XRP through their brokerage accounts. This can bring in more investors and an inflow of millions of dollars worth of XRP investments. The liquidity will be expanded, and the market will become stronger and more stable for the asset. 

The capital inflow from institutional investors and high liquidity will create a “price escalator” effect for XRP. Large buy orders will reprice the liquidity pools,  potentially driving XRP prices higher. This mechanism could trigger sharp price movements and sustain price levels more effectively than speculative trading alone. The price appreciation of XRP prior to the ETF launch signifies investor optimism. 

While all these are speculations, actual price movements will depend on ongoing institutional interest, broader market conditions, and the adoption of Ripple’s technology in payments. Sustained gains require continued capital flow and fundamental developments in XRP’s ecosystem.

The Bottom Line 

The launch of Bitwise’s spot XRP ETF not only broadens XRP’s market liquidity and accessibility but also underscores its potential to reshape global payments through its fast and scalable blockchain technology. However, investors should be aware of the inherent volatility and regulatory risks associated with cryptocurrency investments and strategize their investments after thorough research.