CBOE BZX Exchange has made a significant move toward launching the first spot exchange-traded funds (ETFs) based on XRP in the USA by submitting 19b-4 filings with the U.S. Securities and Exchange Commission (SEC).
What is a 19b-4 Filing?
A 19b-4 filing is an official request to alter 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 XRP, the fourth-largest cryptocurrency by market value.
The Four Asset Managers Involved
The four asset managers behind the filings are well-experienced in the ETF space and are vying to introduce XRP ETFs:
- Bitwise: Known for its cryptocurrency funds, it was first to file a Form S-1 for its Bitwise XRP ETF back in October. - 21Shares: A global leader in crypto-backed ETFs, applied for its XRP ETF in November. - Canary Capital: Filed its XRP Trust S-1 application shortly after Bitwise. - WisdomTree: A significant player in the ETF market, filed its XRP Fund with the SEC in December.
Each company had already submitted S-1 filings, the initial step in the ETF registration process, before the 19b-4 filings.
The SEC’s Changing Approach
Historically, the SEC has been cautious about approving crypto ETFs, especially for assets beyond Bitcoin and Ethereum. However, recent changes in the leadership within SEC suggest a possible shift in direction.
With Mark Uyeda appointed as acting Chair and Hester Peirce leading the newly formed crypto task force, changes at the agency have been noted.
Peirce has stated her goal is to clarify which "crypto assets" qualify as securities, which could have broad implications for XRP and the crypto space generally.
The 19b-4 filings are a positive sign but do not guarantee approval. The SEC will review these filings and may invite public comments. The SEC's decision will significantly impact the future of XRP and the cryptocurrency industry, given the growing interest in crypto ETFs.
