Bitwise spot XRP ETF launches Thursday amid altcoin fund rush

Bitwise Asset Management is about to launch a groundbreaking new spot ETF focused on XRP. With trading set to begin Thursday, this move comes amid a wave of enthusiasm for altcoin ETFs—and could signal a new phase in crypto’s institutional embrace.

Expanding the Altcoin ETF Universe

The new Bitwise fund, trading under the ticker “XRP,” will be the firm’s first U.S.-based spot ETF tied to the XRP token. Though Bitwise has already offered a physically-backed XRP ETP in Europe, this latest product introduces XRP exposure to American markets in a regulated ETF format. The fund will begin with a management fee of 0.34 percent, but that fee will be waived for the first month on the initial $500 million in assets—an aggressive move to build early momentum.

Canary Capital already launched a U.S. XRP ETF under the ticker “XRPC,” which has managed to attract nearly $277 million in assets since inception. Bitwise will now enter that competitive space, hoping to differentiate through branding, pricing, and distribution reach.

With a current market cap of approximately $127 billion, XRP is the third-largest non-stablecoin cryptocurrency, and its blockchain has already processed over 4 billion transactions. The ETF product offers investors a streamlined entry point into this significant asset class, bypassing the complications of custody, key management, and exchange accounts.

Why Institutional Players Are Paying Attention

Bitwise’s XRP ETF doesn’t just add another trading vehicle to the market—it marks a shift in institutional strategy. Until now, crypto ETFs in the U.S. were almost entirely focused on Bitcoin and, more recently, Ethereum. By offering direct exposure to XRP, Bitwise is tapping into demand for broader crypto asset diversification. This launch provides institutional investors—from pension funds to hedge funds—a familiar vehicle to gain exposure without handling the tokens directly.

The SEC recently clarified that issuers may launch spot crypto ETFs without undergoing a full regulatory review, so long as certain structural criteria are met. This has opened the floodgates for a new generation of altcoin ETFs, allowing firms like Bitwise to move quickly into market gaps.

This regulatory shift is arguably the most important enabler of the current altcoin ETF wave. With fewer procedural hurdles, issuers can respond more dynamically to investor appetite, and launch products tied to previously untapped assets.

Ripple Effects and Competitive Tension

The XRP ETF arms race is heating up. With Canary Capital’s early success on the board, Bitwise now faces the challenge of attracting its own capital flows. Their fee strategy and branding may help—but success will depend on more than cost competitiveness. Investors will be watching for execution quality, especially in areas like custody transparency, redemption mechanisms, and how faithfully the ETF tracks spot XRP prices.

The ETF could also impact XRP’s trading behavior. If the fund attracts substantial inflows, that could add structural demand to the token and shift liquidity across exchanges. At the same time, it may introduce new forms of volatility depending on how arbitrage, issuance, and redemption flows play out in live markets.

This launch could also inspire other issuers to enter the fray. Assets like Solana, Cardano, and even Litecoin may soon see their own ETF products if this XRP move proves successful. Major players like Grayscale or Franklin Templeton could soon roll out competing offerings, setting the stage for an even more fragmented and dynamic market.

A Cautious Path Forward

Despite the excitement, risks remain. The regulatory window that currently enables these ETFs could close just as quickly, depending on future enforcement shifts or political pressure. XRP’s market structure is also more volatile and less liquid than Bitcoin or Ethereum, which introduces tracking and pricing risks for ETF issuers.

Furthermore, trust in Bitwise’s custodial practices and operational integrity will be tested. Institutional investors care deeply about audit trails, redemption policies, and real-asset backing. Any misstep in these areas could hurt credibility and slow adoption.

There is also the broader question of investor suitability. Altcoins are more volatile, and ETFs based on them may not be appropriate for all portfolios. The convenience of access doesn’t eliminate the need for careful risk analysis—especially in a market as unpredictable as crypto.

The Bottom Line

Bitwise’s XRP ETF represents a pivotal moment in crypto finance. It reflects a strategic shift toward broader institutional acceptance of altcoins and capitalizes on recent regulatory clarity to bring a new type of product to market. If successful, it could catalyze a wave of similar funds and expand the role of crypto in traditional investment portfolios.

But the road ahead will be shaped by investor behavior, competitive positioning, and the ever-shifting winds of regulation. For now, though, one thing is clear: the altcoin ETF era has officially begun.