**Summary:**
Cryptocurrency investment firm Bitwise has submitted a revised S-1 filing to the US Securities and Exchange Commission (SEC) to advance its Ripple (XRP) Exchange Traded Fund (ETF) application process. The changes proposed in the filing include updates concerning the trust structure, custody arrangements and procedures for share creation and redemption.
The filing explains that the fund’s shares will be traded directly through brokers, with trade orders potentially incurring normal brokerage fees. It also adds that there has been no prior exchange for the shares. The filing details the XRP Custody Agreement, which ensures that Trust’s assets are kept separate from the assets held by the custodian, enhancing the security of the associated private keys for XRP.
This new filing follows Bitwise’s first S-1 form registration on October 2, when they initially attempted to introduce an XRP ETF into the US market. Within this second filing, Bitwise accepts the regulatory uncertainties surrounding XRP, as the SEC appeal over Ripple’s ruling is pending and can still influence the Bitwise XRP ETF launch.
Bitwise has also stated that in the event XRP is classified as a security, it will liquidate its ETF holdings under the terms specified in the ‘Trust Agreement’. The filing also outlines protection measures for investors and compliance with the relevant federal securities laws. Finally, while Bitwise confirms Coinbase Global’s insurance for up to $320m, it notes that this policy is only shared among all of Coinbase’s customers and may not be sufficient to cover every possible loss.
The Bitwise XRP ETF’s chances of approval can be seen as uncertain pending the SEC’s ruling in the Ripple case.