- CBOE files 19b-4 forms for XRP ETFs, moving them closer to SEC approval. Decision pending.
- XRP lacks a futures market, forcing ETF applicants to prove resistance to market manipulation.
- SEC’s decision on XRP ETFs could impact crypto investment accessibility and institutional adoption.
The Chicago Board Options Exchange (CBOE) has submitted 19b-4 filings for multiple XRP exchange-traded funds (ETFs). The proposals come from Bitwise Investment, WisdomTree, 21Shares, and Canary Funds. The US Securities and Exchange Commission (SEC) now has 240 days to review and decide on the applications.
XRP ETF Filings Move Closer to Approval
The filings request a rule change that would allow these XRP ETFs to be listed and traded. The SEC must evaluate whether these proposals meet the required regulations. XRP exchange-traded funds (ETFs) create new investment choices for traders and institutions.
The Securities and Exchange Commission (SEC) displays shifting policies towards granting cryptocurrency ETF approvals.The SEC has recently confirmed two proposed Litecoin ETFs submitted by Canary Funds and Grayscale. This development has raised hopes among XRP supporters that the SEC may approve similar products.
XRP’s Legal Standing and Market Challenges
The applicants base their claims on the SEC’s 2023 Ripple XRP ruling where XRP was determined not to be a security. The court determined that Ripple’s institutional sales of XRP violated existing securities regulations.. This legal distinction plays a major role in shaping the current ETF filings.
The Chicago Mercantile Exchange (CME) does not operate futures markets for XRP unlike Bitcoin and Ethereum. The SEC has shown preference towards ETFs that use regulated futures market frameworks. Without a futures market, the applicants must prove that XRP trading is resistant to manipulation.
Applicants Highlight Market Strength and Utility
Each applicant presents a unique argument to support the approval of XRP ETFs. WisdomTree highlights global liquidity and how arbitrage stabilizes pricing. Bitwise points to the success of Bitcoin and Ethereum ETFs as evidence of a strong price discovery process.
21Shares emphasizes XRP’s stable trading volumes and pricing dynamics. Canary Funds focuses on XRP’s role in payments and remittances to demonstrate its real-world utility. These arguments aim to convince regulators that XRP is a mature and viable asset.
SEC Review and Market Expectations
The SEC’s decision on these applications will set an important precedent. If approved, XRP ETFs could enhance market accessibility and attract institutional investors. However, concerns about transparency and investor protection may still influence the outcome.
The review process will be closely monitored by investors and market analysts. A favorable decision could pave the way for future crypto ETFs. The market now awaits the SEC’s response in the coming months.
