Spot

<p>Bitwise has taken a significant step by filing for the <a href="https://coinpedia.org/news/xrp-etf-approval-in-sight-bitwises-latest-filing-sparks-investor-interest/" target="_blank" rel="noreferrer noopener">first-ever Spot XRP ETF</a> with the U.S. Securities and Exchange Commission (SEC). The trust, registered in Delaware, aims to provide investors with direct exposure to <a href="https://coinpedia.org/price-prediction/xrp-ripple-price-prediction/" target="_blank" rel="noreferrer noopener">XRP's value</a>, which will reflect the coin's price minus operational costs. This marks a major move for the crypto space, but it raises an important question: is an XRP futures market necessary? This development is already making waves in <a href="https://coinpedia.org/news/ripple-news-can-secs-potential-appeal-cause-the-rejection-of-bitwises-xrp-etp/" target="_blank" rel="noreferrer noopener">Ripple news</a>.</p>   
<h2 class="wp-block-heading" id="h-bitwise-files-for-first-spot-xrp-etf">Bitwise Files for First Spot XRP ETF</h2>   
<p>As one of the largest crypto asset managers, Bitwise has been behind several crypto ETFs and is now leading the charge for an XRP Spot ETF. In its filing, Bitwise highlighted that XRP holdings for the trust will be secured by Coinbase Custody Trust Company.&nbsp;</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/HHorsley/status/1841475159326396708 
 </div>
</figure>   
<p>While this custodial service isn’t insured by the FDIC, private insurance is in place to offer protection, as with other Bitwise ETFs.</p>   
<p>The application for the Spot XRP ETF was filed on October 2, marking a follow-up to the <a href="https://coinpedia.org/news/ripple-ceo-predicts-more-asset-managers-would-follow-after-bitwise-xrp-etf-filing/" target="_blank" rel="noreferrer noopener">registration of the XRP ETF Trust</a> in Delaware. The move has sparked excitement, but also some debate, as the SEC has previously required a futures market for Bitcoin and Ethereum spot ETF approvals.</p>   
<h2 class="wp-block-heading" id="h-will-an-xrp-futures-market-be-needed">Will an XRP Futures Market Be Needed?</h2>   
<p>In a recent interview on the Thinking Crypto podcast, SEC Commissioner Hester Peirce addressed the need for futures markets in ETF approvals. When asked whether an XRP futures market is necessary, she stated that a spot ETF doesn’t always require one.&nbsp;</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/ThinkingCrypto1/status/1841476320020115811 
 </div>
</figure>   
<p>It depends on the specific product, but having a futures market has helped in understanding the underlying asset, as seen with Bitcoin and Ethereum.</p>   
<p>Peirce also noted that while Bitcoin and Ethereum benefited from futures markets, this doesn’t mean every cryptocurrency needs one. Each case should be evaluated on its own, meaning XRP could potentially proceed without a futures market in place.</p>   
<p>As Bitwise leads this effort, the future of XRP’s market dynamics will be closely watched, especially with the possibility of competing with larger assets like Bitcoin and Ethereum.</p>   [post_titles_links postid="359010"]

Will XRP Need a Futures Market for Spot XRP ETF Approval? SEC Commissioner Clarifies It

Table of Contents

CoinPedia News

Other articles published on Oct 3, 2024

'Japan's MicroStrategy' Buys More Bitcoin With Put Options Sale

Hedera Joins MiCA Crypto Alliance with Ripple and Aptos, Launches Asset Tokenization Studio

Michael Saylor's MicroStrategy to Issue $700M in Senior Convertible Notes to Buy More Bitcoin

Ripple CEO Predicts $5 Trillion Crypto Market Cap As RLUSD Prepares to Launch

Top 5 Altcoins to Watch in October: SEI, TAO, WORM, SUI, LINK

Hedera Joins MiCA Crypto Alliance with Ripple and Aptos, Launches Asset Tokenization Studio

Join our free newsletter for daily crypto updates!