Ripple Labs has moved towards its global expansion by investing in Bitwise’s renamed XRP exchange-traded product (ETP). This action is taken as Bitwise restructures its products in Europe to increase its presence in the fast-changing cryptocurrency sector.
Bitwise Rebrands XRP ETP
The Bitwise European XRP ETP was renamed from “ETC Group Physical XRP” to “Bitwise Physical XRP ETP,” with the ticker code GXRP remaining the same. This development significantly advances Bitwise’s plan to increase its market share in Europe.
The ETC Group (a top participant in the cryptocurrency investment market with over $1 billion in assets under management) rebranded after Bitwise acquired it. The acquisition included several physically backed cryptocurrency ETPs, including Bitcoin (BTCE), Ethereum with staking (ET32), Solana (ESOL), and others.
Institutional investors find this Bitwise ETP a compelling choice since it enables them to obtain exposure to XRP. Bitwise CEO and co-founder Hunter Horsley remarked that the rebranding initiative is part of Bitwise’s bigger drive to grow its operations across the European continent.
Ripple’s Investment Amplifies XRP ETP Growth
Ripple’s choice to purchase GXRP highlights the rising demand for financial products backed by cryptocurrencies worldwide. Although the investment’s precise financial terms have not been made public, Ripple CEO Brad Garlinghouse said there is a growing need for cryptocurrency ETPs, especially as US regulations become more apparent.
According to Garlinghouse, the cryptocurrency business underwent significant change in 2024, with institutional adoption fueled by more transparent legal frameworks. He pointed out that Ripple’s support of the Bitwise Physical XRP ETP is consistent with its goal of facilitating cryptocurrency investments for investors worldwide.
Besides this ETP, Bitwise also introduced an Aptos staking ETP. Earlier this month, it submitted an S-1 registration for a new exchange-traded fund (ETF) linked to Ethereum and Bitcoin. These actions and Ripple’s funding suggest a bright future for the GXRP product.
Legal Victories Strengthen Crypto Ecosystem
Recently, the US Court of Appeals for the Fifth Circuit decided that Tornado Cash and other smart contracts do not qualify as services and are exempt from penalties. The Office of Foreign Assets Control (OFAC) of the US Treasury brought the action against Tornado Cash, a crypto mixing protocol, in 2022.
Its allegation against the platform was that it aided money laundering. Following the ruling, David Schwartz, Ripple’s Chief Technology Officer (CTO), used a comical comparison to link the incorrect classification of smart contracts to items like books or screwdrivers as “services.”
European Expansion Signals Growing Institutional Interest
With more than $10 billion in client assets, Bitwise has claimed notable growth in 2024. The company’s renamed ETP portfolio is anticipated to attract more customers and solidify its position as a pioneer in cryptocurrency investing options.
By supporting GXRP, Ripple establishes itself as a major participant in the global financial ecosystem while bolstering trust in the XRP Ledger. The partnership between Bitwise and Ripple establishes a standard for the convergence of blockchain technology and traditional finance as European markets welcome cutting-edge digital asset projects.
XRP is well-positioned to continue leading the way in the changing digital asset market as institutional demand increases and regulatory clarity improves.
Ripple’s Involvement in Pro-crypto Politics
Notably, Ripple has moved to influence political leanings toward digital assets by making substantial donations. The blockchain solutions provider donated $25 million to Fairshake PAC to back the crypto legislation agenda.
This donation is the firm’s third financial backing to Fairshake PAC, which now totals $70 million. Ripple’s support aligns with Fairshake’s move to elect pro-crypto candidates to the US legislative houses.
Meanwhile, the company’s influence within Fairshake was instrumental in the run-up to the November 2024 elections, when the PAC spent millions of dollars to support pro-crypto candidates. According to CoinGecko data, XRP trades at $1.47, up 6.9% in the last 24 hours.
