CBOE BZX has taken a significant step toward launching spot-based XRP ETFs by filing 19b-4 documents with the SEC. This move could pave the way for the first spot XRP ETFs in the United States.
Understanding the 19b-4 Filings
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. These filings indicate the asset managers' intent to offer XRP-based ETFs, which would track the price of XRP, the fourth-largest cryptocurrency by market value. Approval by the SEC of these filings would be a milestone for the crypto space, enabling investors to gain exposure to XRP's price movements through traditional brokerage accounts, bypassing the complexities associated with directly purchasing the cryptocurrency.
The Key Players in the Filings
The four asset managers behind the filings are well-established leaders in the ETF space. Among them are Bitwise, 21Shares, Canary Capital, and WisdomTree. Each of these companies had already submitted S-1 filings, the initial step in the ETF registration process, before making the 19b-4 filings.
The SEC’s Changing Approach
Historically, the SEC has been cautious in approving crypto ETFs, especially for assets beyond Bitcoin and Ether. However, recent shifts in the SEC's leadership suggest a potential change in direction. Under acting Chair Mark Uyeda and with the formation of a new crypto task force led by Hester Peirce, the SEC has begun to reconsider its stance.
While the 19b-4 filings are a positive sign, they do not guarantee approval. The SEC’s decision could impact not only the future of XRP but the broader cryptocurrency industry.
