Ripple (XRP) just announced that it will invest in the newly renamed Bitwise Physical XRP ETP. This news has added momentum, causing prices to surge. Today's increase also helped XRP achieve a 26.8% rise compared to last week, marking an impressive recovery in the market.
Bitwise Physical XRP ETP, formerly known as European XRP ETP, is part of the rich cryptocurrency fund portfolio that Bitwise offers. The company also provides Ethereum and Bitcoin spot ETFs in the United States.
Ripple CEO Brad Garlinghouse stated that the decision to invest in the Bitwise fund (traded under the ticker GXRP) is a very suitable move amidst the growing demand for exchange-traded products (ETPs) linked to cryptocurrencies.
"With the U.S. cryptocurrency regulatory environment finally becoming clearer, this trend will accelerate, driving demand for crypto ETPs, such as Bitwise Physical XRP ETP. As one of the most valuable, liquid, and useful digital assets, XRP is leading this momentum, becoming a foundation for those looking to access resilient and practical utility assets," he said in a press release.
Ripple has been very careful over the years to emphasize that they are not just the issuer of XRP. The Ripple Network also uses XRP as the native cryptocurrency for international money transfers and currency exchanges.
However, the legality and securities status of XRP are at the center of a four-year lawsuit with the U.S. Securities and Exchange Commission (SEC). Last weekend, the price of XRP surged to a three-year high of $1.49 after SEC Chairman Gary Gensler announced he would resign on January 20, the same day as President-elect Donald Trump's second inauguration. Investors seem confident that an SEC without Gensler will lead to a quicker conclusion for the lawsuit.
Aside from the legal news, there is also increasing interest from other companies in bringing spot XRP ETFs to the U.S.
Earlier this week, WisdomTree filed with the SEC to register an ETF for Ripple's native altcoin.
The documents filed with the state of Delaware are the first step toward obtaining approval for such a product. WisdomTree will have to file with the top Wall Street regulator, the SEC, to officially proceed with the process.