Bitwise Moves Closer to XRP ETF Despite Legal ‘Grey Area’
The post Bitwise Moves Closer to XRP ETF Despite Legal ‘Grey Area’ appeared on BitcoinEthereumNews.com.
Bitwise has taken another step towards launching an XRP-based ETF, updating its submission to the US Securities and Exchange Commission (SEC). Based on the filing, the crypto index fund manager revised its S-1 registration, clarifying the structure of the trust, custody measures, and the processes for share creation and redemption. XRP’s regulatory status remains contentious, with the uncertainty playing a role in Bitwise’s move to update its filing. Bitwise Updates XRP ETF Filling A key highlight of the new filing is the trust’s use of cold storage for most of its XRP holdings. This ensures enhanced security, with only a limited amount moved to hot storage to facilitate efficient basket creations and redemptions when necessary. The updated structure of the trust details the process of creating and redeeming shares in blocks of 10,000 units, referred to as “Baskets.” The number of XRP required per Basket will be adjusted daily, accounting for any accrued fees or expenses. Additionally, the XRP Custody Agreement emphasizes plans to keep the trust’s assets separate from the custodian’s other holdings. This segregation aims to protect the private keys associated with the XRP and enhance overall security. To streamline trading, Bitwise has appointed a Prime Execution Agent. This agent will handle the purchase and sale of XRP across major platforms like Bitstamp, Kraken, Coinbase, and LMAX. Their role includes providing short-term financing, known as Trade Credits. These ensure the execution of orders promptly, even if the trust’s XRP or funds are temporarily unavailable. Read more: XRP ETF Explained: What It Is and How It Works Similarly, Coinbase Global holds a commercial crime insurance policy covering risks such as theft, fraud, and cyber-attacks. This adds to the guardrails, with Coinbase affiliated with Prime Execution Agent and the XRP Custodian. Nevertheless, Bitwise articulates that this policy stands for all Coinbase…
Filed under: News - @ October 17, 2024 10:27 am