đ¨Breaking Newsđ¨ Leading asset managers WisdomTree, Bitwise, 21Shares, and Canary Capital have filed for spot XRP ETFs with the Cboe BZX Exchange, marking a significant step toward institutional crypto adoption amid evolving SEC regulations.
Major Asset Managers Enter the XRP ETF Race
The Cboe BZX Exchange has filed 19b-4 forms on behalf of four asset managers seeking to introduce the first spot XRP exchange-traded funds (ETFs) in the United States. Financial firms WisdomTree, Bitwise, 21Shares, and Canary Capital have submitted applications with the Chicago Board Options Exchange (CBOE) to list these ETFs, marking a critical step in the regulatory approval process.
The filings, submitted to the U.S. Securities and Exchange Commission (SEC), request authorization to trade the proposed XRP ETFs. If approved, these investment products could provide institutional investors with a regulated avenue to gain exposure to XRP, further integrating digital assets into mainstream financial markets.
Regulatory Landscape and Market Implications
The push for XRP ETFs follows the approval of Bitcoin and Ethereum-based ETFs earlier in 2024. While some financial institutions remain cautious about the demand for crypto ETFs, asset managers are eager to capitalize on the expanding market.
These applications coincide with a shift in the SECâs leadership and regulatory stance. Under former Chair Gary Gensler, the SEC permitted Bitcoin and Ethereum ETFs to begin trading. However, with the SEC now led by acting Chair Mark Uyeda, who is perceived as more open to crypto-related financial products, analysts have observed an increase in ETF filings. Many industry players are evaluating the extent to which a potential Trump administrationâs influence on the SEC could further impact regulatory decisions.
Competitive Landscape and Previous Filings
Bitwise was the first to file for its Bitwise XRP ETF, submitting a Form S-1 registration with the SEC in October. Canary Capital followed closely, filing for its Canary XRP Trust shortly thereafter. 21Shares filed for its 21Shares Core XRP Trust in November, while the WisdomTree XRP Fund was submitted in December. Both a Form S-1 and a 19b-4 filing are required for regulatory approval before an ETF can commence trading.
In addition to these filings, the New York Stock Exchange (NYSE) subsidiary NYSE Arca submitted a separate 19b-4 request on January 30 to convert Grayscaleâs existing XRP Trust into a spot ETF, further intensifying competition in the space.
Legal Considerations and SEC Scrutiny
A key factor supporting these filings is the partial legal victory Ripple Labs secured against the SEC in July 2023. The case sought to determine whether XRP should be classified as a security under federal law. The SECâs appeal to the Second Circuit aims to overturn a decision that found programmatic XRP sales to retail investors did not constitute investment contracts.
The Cboe filings assert that XRP should not be classified as a security under current legal frameworks, stating,
“Cboe believes it is applying proper legal standards in making a good faith determination that XRP is not under these circumstances a security under federal law.”
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2025-02-07 20:08