XRP ETF Race Heats Up as Cboe BZX Exchange Files 19b-4s with the SEC

The race for a spot XRP ETF is gaining momentum. The Cboe BZX Exchange has filed 19b-4s with the SEC for several proposed ETFs

The race for a spot XRP ETF is heating up. The Cboe BZX Exchange has filed 19b-4s with the SEC for several proposed ETFs, testing the waters for potential approval.

The 19b-4 filing is done on behalf of Bitwise, 21Shares, and Canary Capital and is a crucial element in the ETF approval process. Other ETF applicant includes Grayscale, WisdomTree, and CoinShares. Upon acknowledgment, the SEC initiates a 240-day review period to evaluate the proposals and either approve or deny the products.

While filing these forms doesn’t indicate approval, it signals progress and demonstrates the growing institutional interest in offering XRP investment vehicles. It must be noted that in the USA, trust shares are traded as ETFs, and hence, incorporation becomes mandatory. The majority of these trusts are incorporated in the state of Delaware.

The filing of the 19b-4’s does not guarantee acknowledgement or approval by the SEC but the agency has recently acknowledged the 19b-4 filings from @CanaryFunds and @Grayscale to list and trade $LTC ETFs. We’ll see if they do the same for $XRP.

Will XRP ETFs Follow Bitcoin’s Footsteps?

Market experts believe XRP’s ETFs have a high chance of success and could establish themselves alongside Bitcoin ETFs. There are several reasons. Firstly, the Ripple-affiliated token is used in cross-border payments, on-demand liquidity (ODL), issuing and tracking RLUSD, and tokenizing RWA funds on XRPL. All of these can drive higher demand for the token.

Also, the token secured a regulatory win when the SEC removed the Ripple case from its website, signaling the agency’s potential withdrawal of the appeal from the courts. Last year, the token established itself as “not a security” after two years of legal battle.

Moreover, the SEC’s recent acknowledgment of 19b-4 filings for Litecoin ETFs from Grayscale and Canary Funds offers a glimmer of hope for XRP proponents. Bloomberg ETF analyst James Seyffart also reported the SEC’s acknowledgment of Grayscale’s Solana 19b-4 filing, indicating a potentially more open stance towards crypto ETFs. The community now awaits the SEC’s decision on whether to acknowledge these filings, which would then trigger publication in the Federal Register for public review.