CBOE BZX Exchange has filed to launch spot XRP ETFs, submitting 19b-4 documents to the U.S. Securities and Exchange Commission.
What Are the Filed Documents?
The filings, submitted on February 6, aim to list four separate XRP ETFs from asset managers Canary Capital, WisdomTree, 21Shares, and Bitwise. These filings could pave the way for the first spot XRP ETFs in the United States. If the SEC approves these filings, it would be a milestone for the crypto market, allowing investors to gain exposure to XRP’s price movements through traditional brokerage accounts, bypassing the complexities of directly purchasing the cryptocurrency.
The Asset Managers Involved
The four asset managers behind the filings are actively working in the ETF space. Bitwise is known for its cryptocurrency funds and was the first to file a Form S-1 for its XRP ETF. 21Shares is a global leader in crypto-backed ETFs, having also filed its application. Canary Capital followed Bitwise with its XRP Trust S-1 application. WisdomTree, a significant player in the ETF market, filed its XRP Fund with the SEC in December. Each of the companies had already submitted S-1 filings, the initial step in the ETF registration process.
The SEC’s Changing Approach
The SEC has historically been cautious when it comes to approving crypto ETFs, especially for assets beyond Bitcoin and Ether. However, recent shifts in leadership within the SEC suggest a possible change in direction. With the appointment of acting Chair Mark Uyeda and Hester Peirce leading the new crypto task force, there could be a change in how the SEC approaches blockchain assets. Such ETFs could have a significant impact on the market, as analysts expect them to attract between $4 billion and $8 billion in investments in the first year.
The filing of the 19b-4 documents is a significant step but not a guarantee for approval. The SEC will now review the filings and may open the process for public comments or deny the proposals. The SEC's decision could take several months and is crucial for both the future of XRP and the broader cryptocurrency industry.
