The CBOE BZX Exchange has made a significant step toward launching spot XRP ETFs by filing 19b-4 documents with the U.S. Securities and Exchange Commission (SEC).
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, such as ETFs. In this case, the filings indicate the asset managers’ intent to offer XRP-based ETFs that would track the price of XRP, the fourth-largest cryptocurrency by market value.
The Four Asset Managers Involved
The filings are backed by four asset managers, each eager to introduce their own XRP ETF:
- Bitwise: Known for its cryptocurrency funds, it was the first to file a Form S-1 for its Bitwise XRP ETF back in October. - 21Shares: A global leader in crypto-backed ETFs, 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.
These companies had already submitted S-1 filings prior to the 19b-4 filings.
The SEC’s Changing Approach
The SEC has historically been cautious about approving crypto ETFs, especially for assets beyond Bitcoin and Ether. However, recent leadership changes suggest a possible shift in direction.
Under the acting Chair Mark Uyeda, and with Hester Peirce leading the newly-formed crypto task force, there is a more open approach. Peirce has made it clear that one of her goals is to clarify which "crypto assets" qualify as securities, a shift that could have significant implications for the wider crypto space. Analysts predict these new products could attract between $4 billion and $8 billion in their first year.
The SEC will now review these filings, a process that could significantly impact the future of XRP and the cryptocurrency industry. The launch of spot XRP ETFs could reshape the market by providing investors with new opportunities through traditional brokerage accounts.
