Cboe BZX Exchange has submitted four applications to the SEC for listing spot XRP ETFs. Applicants include WisdomTree, Bitwise, 21Shares, and Canary Capital.
New Filings with the SEC
Cboe BZX Exchange has filed four separate applications with the U.S. Securities and Exchange Commission (SEC) to list spot XRP exchange-traded funds (ETFs). This move comes despite a recent 25% decline in XRP's price. The applicants aim to launch the first U.S.-based spot XRP ETFs, relying on a partial legal victory by Ripple Labs in July 2023.
Regulatory Safeguards and Market Prospects
To address regulatory challenges, asset managers have introduced several safety measures. According to WisdomTree's filing, XRP will be sourced from secondary markets rather than Ripple Labs. Protective measures include transaction monitoring, third-party custodial services, and cold storage for assets. Moreover, mechanisms to halt intraday trading have been proposed.
Future Steps and Market Context
If approved, these XRP ETF applications would enter uncharted regulatory territory. The SEC will review the applications within 45 days of their publication in the Federal Register, with possible extensions up to 90 days. This application follows Cboe’s reapplication for spot Solana ETFs last week. Analysts have noted an uptick in crypto-related filings under Mark Uyeda's chairmanship.
The applications filed by Cboe BZX for spot XRP ETFs could mark a new regulatory chapter in the crypto industry. However, the forthcoming decisions by the SEC will be pivotal for the market's future.
