Big News: Bitwise XRP ETF Set to Launch Today Creates Confusion, Here’s Why

Bitwise Asset Management is set to launch its spot XRP exchange-traded fund (ETF) today on the New York Stock Exchange (NYSE), under the ticker symbol XRP. This marks another significant milestone in the integration of the cryptocurrency into traditional financial markets, allowing investors to gain exposure to XRP, the third-largest non-stablecoin cryptocurrency, without owning the asset directly.

The ETF will carry a management fee of 0.34%, with the first month’s fees waived for the first $500 million in assets.

However, the decision to use “XRP” as the ETF’s ticker symbol has created confusion within the cryptocurrency community. This is because XRP is already a widely recognized name for the cryptocurrency itself, which could make it challenging for investors to differentiate between the asset and the newly launched ETF.

Krippenreiter, a noted figure in the crypto community, tweeted: “I still wonder how you guys were able to choose ‘XRP’ to be your official ticker. Now we will need to write explainers to differentiate between XRP, the asset, and XRP, the Bitwise ETF.” This highlights the potential confusion surrounding the ticker symbol and its implications for both retail and institutional investors.

Why Ticker Confusion Can Arise

Typically, ETF tickers are created by combining the issuer’s name or a variant of it with the underlying asset the ETF is tracking. This practice helps create clear distinctions between various products, providing easy identification for investors. For example, Grayscale’s Bitcoin ETF uses the ticker GBTC, where “G” refers to Grayscale, and “BTC” stands for the trust company tracking Bitcoin.

Similarly, the Fidelity Ethereum uses the ticker FETH, which combines the “F” from the issuer Fidelity with “ETH,” the symbol for Ethereum.

In contrast, Bitwise’s choice of “XRP” for the ETF ticker does not follow the usual convention of incorporating the issuer’s name or a variation of it. This decision has led some in the community, like crypto observer Elliot, to question the logic behind the choice. “Very confusing ticker symbol. How can that be allowed?” Elliot tweeted, referencing the fact that there is no Bitcoin ETF with the ticker BTC, which would have followed the same pattern of using the cryptocurrency’s symbol.

Vincent Van Code, another observer, pointed out that the native XRP token will likely play a different role in the market, acting as a wholesale token for settlement, custody, and transfers. Retail investors, according to Van Code, will primarily trade the ETF.

“That’s the end game for native XRP and XRPL,” he added, suggesting that the distinction between the two products will become clearer as the market matures.

The Growing Crypto ETF Market

Despite the confusion over the ticker, the launch of the Bitwise XRP ETF is part of a broader trend in the U.S. cryptocurrency ETF market. The SEC’s recent guidance has paved the way for several new crypto ETFs, expanding the options available to investors who want exposure to digital assets without directly holding them.

Bitwise’s ETF follows closely behind Canary Capital’s XRPC fund, which has already attracted $276.8 million in net inflows since its launch.

Grayscale is also poised to launch its GXRP ETF soon, further adding to the growing competition. These products, along with ETFs for assets like Solana and Litecoin, reflect the increasing demand for altcoin exposure among investors.

As the market continues to evolve, the question of ticker names and their clarity may become even more relevant, with many crypto ETFs pushing the boundaries of traditional naming conventions.