CBOE BZX Exchange has taken a significant step toward launching spot XRP ETFs by filing 19b-4 documents with the U.S. Securities and Exchange Commission.
What is a 19b-4 Filing?
A 19b-4 filing is an official request to change a rule with the SEC, allowing companies to propose new investment products such as ETFs. In this case, the filings indicate asset managers' intent to offer XRP-based ETFs, which would track the price of the cryptocurrency. If approved by the SEC, this would mark the first spot XRP ETFs in the US, enabling investors to gain exposure to XRP's price movements through traditional brokerage accounts, bypassing the complexities of directly purchasing the cryptocurrency.
The Involvement of Asset Managers
The four asset managers involved in the filings are well-established in the ETF space and aim to introduce XRP ETFs:
SEC's Changing Approach
The SEC has historically been cautious in approving crypto ETFs, especially for assets beyond Bitcoin and Ether. However, recent shifts in leadership within the SEC suggest a possible change in direction.
While the 19b-4 filings are a positive sign, they do not guarantee approval. The SEC’s decision could take several months and will be crucial for both the future of XRP and the broader cryptocurrency industry.
