XRP Spot ETFs Could Soon Hit the Market as CBOE Pushes for SEC Approval
CBOE BZX Exchange has officially submitted a list and trading point XRP ETF to the SEC, marking a significant progress in encrypting the ETF landscape. Applications submitted under Rule 19b4, Representatives WisdomTree, Bitwise, 21shares and Canary Capital, aims to launch exchange-traded products that track XRP, the fourth largest cryptocurrency with market cap through market cap.
This file represents the second part of the two-step process of starting an encrypted ETF. Once approved by the SEC, the proposal will be published in the Federal Gazette, officially launching the agency’s approval process. Industry experts predict that with the help of professional government and the upcoming new SEC chair, the approval of the XRP Spot ETF may have happened as early as this year.
The filing said: “The exchange believes that approval of the proposal (and comparable proposals) provides the committee with an opportunity to allow U.S. investors to access XRP in regulated and transparent exchange-traded vehicles, which would limit U.S. investors’ risk.”
Unlike previous crypto ETFs, XRP lacks the futures market established on the Chicago Mercantile Exchange (CME), a key component of the decision-making process for Bitcoin and Ethereum approvals. To increase the likelihood of approval, one of the applicant companies, WisdomTree, is implementing safeguards such as purchasing XRP from the secondary market rather than Ripple Labs, avoiding any direct links with the SEC Legal Fight Center.
The company relies on Ripple’s partial victory over SEC
Interest in the XRP ETF increased after Ripple Labs won some legal victories in July 2023 and made a favorable ruling in its ongoing SEC lawsuit. The ETF application has mentioned this legal result. As the approval process for these ETFs continues, there is increasing expectation that a wave of institutional investment may flood into the market. The launch of XRP ETFs, along with similar products targeting top cryptocurrencies such as Solana, will provide investors with more room to access digital assets. I
