TheupdatedfilingexpandsonBitwise\'searliersubmission,coveringcustody,basketcreation,andcontingencyplansamidXRP\'sregulatoryuncertainty.
KeyTakeaways
BitwiserevisesitsXRPETFfiling,enhancingcustodyandtradingstructures.
SEC\'sdecisiononRippleappealcrucialforBitwiseXRPETF\'sfuture.
BitwisehasupdateditssubmissionforlaunchinganXRP-basedETFbyrevisingitsS-1registrationwiththeSECwithanewfilingreleasedtoday.
ThelatestfilingrefinesthedetailsoftheTrust’sstructure,custodyarrangements,andthemechanismsforcreationandredemptionofshares.
ThissubmissionfollowstheinitialS-1formfiledonOctober2,whichmarkedBitwise’sfirstformalattempttobringanXRPETFtotheUSmarket.
ThefilingoutlinesthattheXRPCustodianwillmainlyusecoldstoragefortheTrust’sassets,movinglimitedamountstohotstorageasneededforefficientbasketcreationsandredemptions.
TheXRPCustodyAgreementensuresthattheTrust’sassetsremainsegregatedfromthecustodian’sotherholdings,enhancingthesecurityoftheprivatekeysassociatedwiththeXRP.
Toexecutetradesefficiently,BitwisehasappointedaPrimeExecutionAgentwhowillfacilitatethepurchaseandsaleofXRPacrossvarioustradingvenues,includingBitstamp,Kraken,CoinbaseandLMAX,amongothers.
Theagent’srolealsoextendstoprovidingshort-termfinancingintheformofTradeCredits,enablingtimelyorderexecutionevenwhentheTrust’sfundsorXRParenotimmediatelyavailable.
TheTrust’supdatedstructureoutlinestheprocessforcreatingandredeemingsharesinblocksof10,000units,referredtoasBaskets.TheBasketAmount,ortherequiredXRPperBasket,willberecalculateddailytoreflectaccruedfeesandexpenses.
BitwiseacknowledgestheregulatoryuncertaintiessurroundingXRP,particularlyinlightofthependingSECappealregardingtheRippleruling.
Thefirmremainstransparentaboutpotentialrisks,statingthatifXRPisclassifiedasasecurity,theTrustmaybeforcedtoliquidateitsholdingsunderthetermsoftheTrustAgreement.Thecompanyhasincludedsafeguardsinitsupdatedfilingtoprotectinvestorsandensurecompliancewithfederalsecuritieslaws.
TheupdatedfilingconfirmsthatCoinbaseGlobal,whichisaffiliatedwithboththePrimeExecutionAgentandtheXRPCustodian,maintainsacommercialcrimeinsurancepolicycoveringarangeofrisks,includingtheft,fraud,andcyberattacks.
However,BitwiseclarifiesthatthisinsuranceissharedacrossallCoinbasecustomersandmaynotbesufficienttocoverallpotentiallossesspecifictotheTrust.
TheSEC’sdecisionontheRipplerulingappealwillbeacrucialdeterminantinshapingtheTrust’spathforwardandcouldultimatelydecidethefateoftheBitwiseXRPETFlaunch.
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