Ripple CEO Reacts as Bitwise Seeks to Convert Its Multi-Crypto Fund Featuring XRP Into an ETP

Ripple CEO Brad Garlinghouse humorously reacts as NYSE Arca files to list the Bitwise 10 Crypto Index Fund (BITW), which contains multiple crypto assets like XRP and Bitcoin, as an exchange-traded product (ETP). 

Yesterday, Bitwise disclosed that NYSE Arca filed a 19b-4 application with the U.S. SEC seeking to list BITW as an ETP. It described the filing as its latest effort to convert the world’s first and largest index fund into an ETP structure. 

BITW Features

For context, the Bitwise 10 Crypto Index Fund launched in 2017, featuring the top 10 crypto assets by market capitalization. BITW has grown into a publicly traded fund valued at $1.24 billion. At press time, Bitcoin, Ethereum, Solana, and XRP account for 74.8%, 16.2%, 4.4%, and 1.9%, respectively. 

The other assets held in the fund include Cardano, Avalanche, Bitcoin Cash, Chainlink, Uniswap, and Polkadot, with weightings of 0.9%, 0.6%, 0.4%, 0.3%, 0.3%, and 0.3%, respectively. 

Bitwise disclosed that it reconstitutes and rebalances the fund and its underlying index monthly to keep them updated with market realities. The fund is currently valued at $1.24 billion, with each share priced at $48.35. 

Notably, the fund has achieved remarkable success since its launch in 2017. The Bitwise 10 Crypto Index Fund shares listed on the OTCQX Best Market three years after the fund’s debut.

In April 2021, it became the first crypto index fund to register as an SEC reporting company, providing investors with additional clarity. 

NYSE Arca is seeking the SEC’s approval to list the fund as an exchange-traded product. If approved, BITW will trade closely to its net asset value (NAV) while offering investors regulatory protection and greater efficiency. 

Ripple CEO Reacts 

The move elicited reactions within the XRP community, with Garlinhghouse expressing excitement. 

Notably, Garlinghouse mentioned the four biggest assets in the fund—BTC, ETH, SOL, and XRP—humorously characterizing them as the ‘alphabet soup’ he loves to see. His statement reflects his enthusiasm for the growing institutional interest in cryptos, particularly XRP. 

Growing Institutional Interest in XRP 

XRP has continued to attract the interest of institutional clients, with top crypto entities seeking to launch ETFs tied to the coin. Companies such as Grayscale Investments, Canary Capital, 21Shares, and Bitwise have submitted various applications to launch spot-based XRP ETFs. 

Specifically, Bitwise first filed to launch an XRP ETF on October 1. A week later, Canary Capital submitted its XRP ETF application to the SEC. Grayscale Investments also applied to convert its multi-fund containing five cryptos including XRP, to an ETF. 

Interestingly, 21Shares became the fourth company to seek the SEC’s blessings for an XRP ETF. NYSE Arca is applying to list the Bitwise multi-fund, featuring XRP and nine other assets, as an ETP on its platform.