The mania for digital asset ETFs is continuing. And this time it’s focused on Ripple.
What’s happening:
- Multiple large asset management companies have filed applications to launch new spot ETFs for providing exposure to Ripple’s XRP token through the traditional public markets
Why it matters:
- Ripple’s XRP token has battled enormous controversy, including a lengthy battle over whether or not it was a security with the United States Securities and Exchange Commission
- Now that Ripple has achieved clarity from the regulators, asset management giants are looking to bring spot ETFs to major stock exchanges in the United States focused on XRP for the first time ever
Going deeper:
- Bitwise and Canary Capital are amongst the first asset management companies to officially file for spot XRP ETFs in the United States
- Spot Bitcoin ETFs have been an enormous success since launching in the United States, seeing major capital inflows from hedge funds, institutions and even pension funds
- Other asset management companies have been launching innovative ETFs focused on digital assets outside of Bitcoin and Ethereum, including State Street’s (NYSE: STT) new partnership with Galaxy Digital (TSX: GLXY) and Defiance ETFs launching a new ETF for leveraged exposure to MicroStrategy (NASDAQ: MSTR) stock
The fine print:
- The United States Securities and Exchange Commission has not yet provided any regulatory guidance around if they will or will not approve spot ETFs for XRP and it is not yet been publicly stated when an official decision will be made
