- Cboe submitted four separate filings with the SEC seeking approval for XRP ETFs.
- These filings come after the approval of Bitcoin and Ethereum ETFs with the SEC.
- Interest in crypto ETFs has increased amidst the changing regulations in the crypto space.
The Chicago Board Operations Exchange (Cboe) has submitted four separate filings with the SEC seeking approval for trading spot XRP ETFs on behalf of Canary, 21Shares, Bitwise, and WisdomTree. XRP ETFs are the latest to join the market after Bitcoin and Ethereum. Notably, this 19b-4 filing is the second step in the two-step process for launching new ETF listings.
Recently, the SEC approved similar filings for Litecoin ETFs from Canary Funds and Grayscale asset managers. That said, the current request from all four XRP ETF applicants relies on the ongoing July 2023 SEC vs. Ripple Labs Case, which seeks to establish whether XRP should be a security or not.
Unlike previous crypto ETFs, XRP lacks an established CME futures market, which is a major barrier to getting approval from the SEC. Yet, the applicants argue other measures like on-chain analytics, price monitoring, and market structure analysis would offer the necessary protection to the investors.
They also draw attention to a different market approach where ETFs would source XRP from exchanges and trading platforms rather than directly from Ripple Labs, where the SEC identified security violations. Market analysts predict that with the pro-crypto administration and the upcoming new SEC chair, the chances of XRP ETFs getting approved are high.
Related: SEC Cuts Crypto Unit as Trump Moves to Ease Regulations
With respect to their filings, WisdomTree discussed liquidity and filed with the SEC for a spot XRP ETF in December. The Canary focused solely on XRP’s payments, while 21Shares discussed XRP’s pricing dynamics.
The ongoing push for XRP ETFs highlights the evolution in the regulatory space surrounding crypto investments. While the SEC’s approval of Bitcoin and Ethereum ETFs has set a precedent, XRP faces additional hurdles due to its lack of a futures market and its association with Ripple Labs. With a shifting regulatory environment and growing institutional interest, market analysts see a strong case for the approval of XRP ETFs, which could solidify the role of cryptocurrency.
