The Chicago Board Options Exchange (CBOE) has officially submitted 19b-4 filings for multiple XRP exchange-traded funds (ETFs). The applications, backed by Bitwise Investment, WisdomTree, 21Shares, and Canary Funds, mark a significant push toward mainstream adoption of XRP. The U.S. Securities and Exchange Commission (SEC) now has 240 days to review and determine the fate of these ETF proposals.
🚨NEW: The @CBOE has just filed the 19b-4s on behalf of @BitwiseInvest and @CanaryFunds for their $XRP ETFs.
— Eleanor Terrett (@EleanorTerrett) February 6, 2025
The 19b-4 forms are the next step in the ETF approval process after issuers file their S-1s. The 19b-4s basically ask the @SECGov to allow them to list and trade the… pic.twitter.com/vMkoTk6G3P
A Pivotal Moment for XRP ETFs
These filings request a regulatory change that would enable the listing and trading of XRP ETFs on U.S. exchanges. If approved, these ETFs could introduce new investment opportunities, particularly for institutional investors seeking exposure to XRP without directly holding the asset.
The SEC’s evolving stance on crypto ETFs provides a backdrop of cautious optimism. Recently, the regulator approved two Litecoin ETFs submitted by Canary Funds and Grayscale, fueling speculation that an XRP ETF approval may follow. However, regulatory scrutiny remains a key challenge.
Legal Standing and Market Hurdles
The 2023 Ripple vs. SEC ruling plays a central role in these filings. While the court ruled that XRP itself is not a security, it determined that Ripple’s institutional sales violated securities laws. This nuanced decision impacts the SEC’s assessment of XRP ETFs, as applicants must prove that XRP trading aligns with existing financial regulations.
One notable challenge is the absence of an coin futures market on the Chicago Mercantile Exchange (CME). The SEC has historically favored ETFs tied to futures markets, as seen with Bitcoin and Ethereum ETFs. Without this infrastructure, applicants must demonstrate that XRP trading is resistant to manipulation and aligns with fair market practices.
Applicant Arguments and Market Strength
Each ETF applicant presents unique arguments to bolster approval chances. WisdomTree underscores XRP’s global liquidity and arbitrage mechanisms. Bitwise cites the success of Bitcoin and Ethereum ETFs in establishing a robust price discovery process. 21Shares emphasizes XRP’s stable trading volumes, while Canary Funds highlights XRP’s real-world use cases in payments and remittances.
Also Read: XRP Whales Accumulate 520 Million Tokens Amid Market Dip: What This Means for Traders
The SEC’s decision will set a precedent for future crypto ETFs. If approved, XRP ETFs could enhance market accessibility and drive institutional adoption. However, concerns over transparency and investor protection may shape the regulator’s final verdict. Investors and analysts are closely watching the review process, anticipating its impact on the broader cryptocurrency market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
