The Cboe BZX Exchange has submitted documents to the U.S. Securities and Exchange Commission for the registration of the first XRP-backed ETFs in the United States.
Cboe and Its ETF Application
On February 6, Cboe submitted 19b-4 forms for four asset managers: Canary Capital, WisdomTree, 21Shares, and Bitwise. These filings aim to establish new ETFs that replicate the price of XRP, currently at $2.35 and ranked fourth in the market. These filings are essential to inform the SEC of proposed changes in market rules. If approved, they will be the first XRP ETFs in the United States.
The Benefit and Prospects of XRP ETFs
The SEC previously approved Bitcoin and Ether ETFs in 2024 under former chair Gary Gensler. With the SEC now under crypto-friendly acting chair Mark Uyeda, analysts expect an increase in crypto ETF filings as issuers explore what a Trump administration-influenced SEC might permit.
Crypto Market and Interest in New ETFs
Cboe recently resubmitted filings for Solana ETFs in late January. Other firms like Bitwise and Canary Capital have also initiated the process of filing for XRP ETFs. According to JPMorgan, XRP ETFs could attract between $4 billion to $8 billion in their first year. The interest in spot XRP ETFs is a sign of the increasing adoption of cryptocurrencies in traditional markets, as XRP approaches its all-time high of $3.40 set in 2018.
The launch of the first XRP-backed ETFs in the U.S. could be a significant step towards integrating cryptocurrency assets into traditional financial markets, opening a new chapter in the investment sector's development.
