CBOE BZX Exchange has taken a significant step toward launching spot XRP ETFs by filing 19b-4 documents with the SEC, potentially paving the way for the first spot XRP ETFs in the U.S.
Significance of 19b-4 Filing
A 19b-4 filing is an official request with the SEC to change a rule, allowing companies to propose new investment products such as ETFs. These filings indicate asset managers' intent to offer XRP ETFs, which would track the price of XRP, the fourth-largest cryptocurrency by market value.
The Four Asset Managers
The four asset managers behind the filings aim to introduce XRP ETFs: * Bitwise: Known for its cryptocurrency funds, Bitwise was the first to file a Form S-1 for its Bitwise XRP ETF in October. * 21Shares: A global leader in crypto-backed ETFs, 21Shares filed its XRP ETF application 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.
Changes in SEC's Approach
The SEC has historically been cautious about approving crypto ETFs, particularly for assets beyond Bitcoin and Ether. However, recent shifts in SEC leadership suggest a possible change in direction. With Mark Uyeda's appointment as acting Chair and Hester Peirce leading the newly-formed crypto task force, there has been a noticeable change in the SEC's approach.
While the 19b-4 filings are a positive sign, they do not guarantee approval. The SEC will now review these filings and may open the process for public comments. The SEC's decision is crucial for the future of XRP and the broader cryptocurrency industry.
