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Bitwise Asset Management has rolled out its anticipated XRP ETF on the New York Stock Exchange, setting a significant precedent for cryptocurrency investment products. The fund will be traded as XRP and give investors access to the third-biggest cryptocurrency by market capitalization. In an effort to reward early investors, Bitwise announced that it would not charge any fee on the first $500 million in AUM for a month.
Bitwise XRP ETF aims to provide US investors with direct spot exposure to XRP, which fuels the operation of the XRP Ledger. The XRP Ledger is a blockchain that allows for fast and low-cost global asset settlements. The fund expands the availability of XRP-focused investment products in the United States since investors can access the asset through an exchange-traded vehicle.
The ETF has an all-in management fee of 0.34% and has agreed to a fee waiver for the first month on assets up to $500 million to encourage early participation and let investors get into the fund without immediate costs. The initial AUM is approximately $2.3 million, which was put into the fund from market makers and authorized participants before the first day of trading.
Bitwise Chief Investment Officer, Matt Hougan, commented on XRP's potential, citing its resilience and active user base. The efficiency of XRP in terms of speed and lower charges has positioned it as one of the most important blockchain assets. The ETF's launch is the latest in a series of crypto investment products by Bitwise targeting European investors, after the company announced plans to start offering the products in the region.
Launching the Bitwise XRP ETF follows increasing interest in blockchain-based payment solutions and, in particular, tokenization. In this vein, XRP has gained interest for its capability to support tokenized assets such as US Treasuries, private credit, and money market funds. The XRP Ledger is considered one of the fastest networks with lower fees, making the platform a real contender for global payment solutions and financial infrastructure.
The launch of the ETF is in line with a broader trend of rising institutional interest in blockchain technology and digital currencies. Other institutions like Franklin Templeton and 21Shares are also close to launching XRP-based ETFs, adding to the growing number of regulated crypto investment products. This surge in investment vehicles focused on XRP underlines the growing role of the asset in the cross-border payments sector.
Despite all the recent market fervor surrounding the token, some have noted the discrepancy between the large market capitalization of XRP and the more modest revenue brought in by transaction volume on the XRP Ledger. The network's low transaction fees are considered to be a feature, however, especially for international financial transactions focused on cost-efficiency.
With the Bitwise XRP ETF now building momentum among mainstream investors, it is bound to bring more attention to the utility of XRP and its potential to reshape the cross-border payment industry. The fund also represents a step in offering structured and regulated means for investors to take part in the fast-growing blockchain ecosystem.
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