XRP Jumps as Ripple Vows to Invest in Rebranded Bitwise Fund

2024-11-29 09:25:23 Primitive Reading

From decrypt by Stacy Elliott

XRP is one of the largest cryptocurrencies by market cap. Image: Shutterstock

Ripple has said it'll invest in a newly-rebranded Bitwise Physical XRP ETP. The news has been a salve for the XRP price, which has shot up 7.2% to $1.43 at the time of writing, according to CoinGecko data. Today's surge puts it 26.8% higher than it was this time last week.

The Bitwise Physical XRP ETP, which was previously called the European XRP ETP, is part of the firm's broader suite of crypto asset funds. The company also offers spot Ethereum and Bitcoin ETFs in the U.S..

Ripple CEO Brad Garlinghouse said the decision to invest in the Bitwise fund, which trades under the GXRP ticker, very much falls in line with the surge in interest for exchange-traded products linked to crypto assets.

"With the U.S. regulatory environment for crypto finally becoming more clear, this trend is poised to accelerate, further driving demand for crypto ETPs, such as the Bitwise Physical XRP ETP," he said in a press release. "As one of the most valuable, liquid, and utility-driven digital assets, XRP is at the forefront of this momentum, standing out as a cornerstone for those seeking access to assets that are resilient and have real-world utility."

Ripple has been extremely careful over the years to emphasize that it is not the issuer of XRP. The Ripple Network uses XRP as its native cryptocurrency for international money transfers and currency exchanges. The legality and security status of XRP is still the subject of what's now a four-year-old Securities and Exchange Commission lawsuit.

Late last week the XRP price spiked to a 3-year-high of $1.49 after SEC Chair Gary Gensler announced that he would be stepping down on January 20, the same day that president-elect Donald Trump is set to be inaugurated for his second term. Investors seem confident that a SEC without Gensler will lead to a speedier conclusion in the lawsuit.

Aside from legal news, there's also been growing interest from other firms in bringing a spot XRP exchange-traded fund to the U.S.

Just earlier this week, WisdomTree filed with the SEC to register an XRP ETF.

The paperwork filed with the state of Delaware is the first step in getting such a product approved. WisdomTree will have to make the filing with Wall Street’s top regulator the Securities and Exchange Commission (SEC) to get the process officially moving.

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