- Cboe BZX Exchange filed four applications for spot XRP ETFs with the SEC.
- SEC has 45 days to review, with possible extensions up to 90 days.
Cboe BZX Exchange has filed four separate applications to the U.S. Securities and Exchange Commission (SEC) to list spot XRP exchange-traded funds (ETFs). Asset managers WisdomTree, Bitwise, 21Shares, and Canary Capital are seeking to launch the first U.S.-based spot XRP ETFs. The move comes despite XRP’s 25% price decline in the last two weeks.
These filings follow recent developments in the cryptocurrency sector. Major players previously launched Bitcoin and Ethereum spot ETFs after securing SEC approval. However, XRP still faces regulatory hurdles. Unlike Bitcoin and Ethereum, it lacks a CME futures market, a key requirement for past ETF approvals.
The proposed funds rely heavily on the partial victory Ripple Labs secured in July 2023. The case questioned whether XRP qualifies as a security. Although the court ruled that programmatic sales to retail investors were not investment contracts, the SEC is currently appealing the decision.
Regulatory Safeguards and Market Prospects
To address regulatory concerns, asset managers have introduced several safeguards. According to WisdomTree’s filing, XRP will be sourced from secondary markets rather than Ripple Labs. This separation aims to distance the fund from Ripple Labs, which remains closely associated with the digital asset.
Protective measures include surveillance, third-party custodial services, and cold storage for XRP holdings. Fund managers have also proposed mechanisms to halt intraday trading to enhance market integrity and investor protection.
If approved, these applications would push XRP ETFs into uncharted regulatory territory. The SEC will review the filings within 45 days once published in the Federal Register. This review period can be extended up to 90 days.
The push for XRP ETFs follows Cboe’s reapplication for spot Solana ETFs last week after addressing the SEC’s previous concerns. Analysts have noted an uptick in crypto-related filings under acting Chair Mark Uyeda, signaling a more open regulatory approach than former Chair Gary Gensler’s tenure.
Highlighted Crypto News Today
Will XRP Find Support or Sink Deeper into Bear Territory?
