The CBOE BZX Exchange has taken steps to launch the first U.S. spot XRP exchange-traded funds (ETFs), marking a potential milestone for the cryptocurrency market.
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 like ETFs. This filing indicates the asset managers' intent to offer XRP-based ETFs tracking the price of the fourth-largest cryptocurrency by market value.
The Four Asset Managers Involved
The filings involve four asset managers: Bitwise, 21Shares, Canary Capital, and WisdomTree. These companies are attempting to introduce spot XRP ETFs to the U.S. market. Each of these firms had previously submitted S-1 filings, the initial step in the ETF registration process.
The SEC’s Changing Approach
The SEC has historically been cautious about approving crypto ETFs. However, recent leadership changes indicate a possible shift in direction. Under acting chair Mark Uyeda, the SEC has signaled a more open approach to approving crypto ETFs, setting the stage for future changes.
The 19b-4 filings submitted by CBOE pave the way for potential approval of the first U.S. spot XRP ETFs. Their approval could significantly impact the market and attract substantial investments into the crypto space.
