CBOE BZX Exchange Officially Files with the SEC to List and Trade Spot XRP ETFs

The filing, submitted under the 19B4 rule, is on behalf of WisdomTree, Bitwise, 21Shares, and Canary Capital, four firms aiming to launch exchange-traded products that track XRP

The CBOE BZX exchange has now filed officially with the SEC for spot XRP ETFs to be listed and traded, indicating major progress in the landscape of crypto ETFs. The filing, which is being submitted under the 19B4 rule, is on behalf of Bitwise, WisdomTree, 21Shares, and Canary Capital, four firms that are aiming to launch exchange-traded products which track XRP, the fourth-largest cryptocurrency by market capitalization.

This filing is the second part of a two-step process for launching a crypto ETF. Once the SEC acknowledges the proposal, it will be published in the Federal Register, which will officially begin the agency’s approval process. Industry experts are predicting that, with the upcoming new SEC chair and a pro-crypto administration, the approval of XRP spot ETFs could come as early as this year.

“The Exchange believes that approving this proposal (and comparable proposals) provides the Commission with the opportunity to allow U.S. investors with access to XRP in a regulated and transparent exchange traded vehicle that would act to limit risk to U.S. investors,” the filing said.

XRP notably lacks an established futures market on the Chicago Mercantile Exchange (CME), which was a key component in the SEC’s decision-making process for approvals of Bitcoin and Ethereum. In order to increase the likelihood of approval, one of the filing firms, WisdomTree, is reportedly implementing safeguards, such as sourcing XRP from secondary markets rather than Ripple Labs, in order to avoid any direct ties with the company at the center of the SEC’s legal battle.

Firms Point to Ripple’s Partial Victory Against SEC

Interest in XRP ETFs has been ramping up after Ripple Labs scored a partial legal victory in July 2023, with a favorable ruling in its ongoing SEC lawsuit. This legal outcome has been cited in the ETF applications. As the approval process for these ETFs continues, there is growing anticipation that a wave of institutional investment could flood into the market. The launch of XRP ETFs, alongside similar products targeting top cryptocurrencies like Solana, would offer investors greater exposure to the digital asset space.