Cboe BZX Files for Multiple Spot XRP ETFs with SEC: What You Need to Know

CBOE BZX Exchange has taken a significant step toward the launch of spot XRP exchange-traded funds (ETFs) by filing 19b-4 documents with the U.S. Securities and Exchange Commission (SEC). 

The filings, submitted on February 6, represent an effort to list four separate XRP ETFs from asset managers Canary Capital, WisdomTree, 21Shares, and Bitwise. These filings are crucial as they could pave the way for the first spot XRP ETFs in the United States.

What is a 19b-4 Filing?

A 19b-4 filing is an official request to change a rule with the SEC, allowing companies to propose new investment products such as ETFs. In this case, the filings indicate the asset managers’ intent to offer XRP-based ETFs, which would track the price of XRP, the fourth-largest cryptocurrency by market value.

If the SEC approves the filings, it would mark a milestone for the crypto space, as it would bring the first spot XRP ETFs to the U.S. market. These ETFs would allow investors to gain exposure to XRP’s price movements through traditional brokerage accounts, bypassing the complexities of directly purchasing the cryptocurrency.

The growing interest in crypto ETFs is notable, especially in light of the SEC's changing stance on digital assets. In recent months, several companies have made attempts to bring other crypto assets, such as Solana and Dogecoin into ETF products. 

The Cboe’s filing signals that these companies are increasingly confident in the current regulatory environment under SEC acting Chair, Mark Uyeda, who has signaled a more open approach to approving crypto ETFs.

The Four Asset Managers Involved

The four asset managers behind the filings are well-established in the ETF space and are vying to introduce XRP ETFs:

• Bitwise: Known for its cryptocurrency funds, Bitwise was the first to file a Form S-1 for its Bitwise XRP ETF back in October.

• 21Shares: A global leader in crypto-backed ETFs, 21Shares filed its XRP ETF application in November.

• Canary Capital: Just behind Bitwise, Canary Capital filed its XRP Trust S-1 application shortly after Bitwise.

• WisdomTree: A significant player in the ETF market, WisdomTree filed its XRP Fund with the SEC in December.

Each of these companies had already submitted S-1 filings, the initial step in the ETF registration process, before the 19b-4 filings were made. 

The SEC’s Changing Approach

The SEC has historically been cautious when it comes to approving crypto ETFs, especially for assets beyond Bitcoin and Ether. However, recent shifts in leadership within the SEC suggest a possible change in direction. 

Under former SEC Chair Gary Gensler, the agency took a hard stance against many crypto ETF proposals. But with the appointment of Mark Uyeda as acting Chair and Hester Peirce leading the newly-formed crypto task force, there has been a marked change in the SEC’s approach.

Peirce has made it clear that one of her goals is to clarify which "crypto assets" qualify as securities. This shift could have far-reaching implications, not only for XRP but for the broader crypto space, as it may lead to the SEC offering clearer guidelines on what qualifies for ETF approval.

Spot XRP ETFs could have a major impact on the market. According to analysts, these products could attract substantial investments in their first year of operation. JPMorgan has estimated that spot XRP ETFs could draw between $4 billion and $8 billion in new assets within the first 12 months.

As firms explore various crypto ETF options, the SEC is facing increasing pressure to provide clear guidance on what products will be approved. 

What’s Next for the XRP ETFs?

While the 19b-4 filings are a positive sign, they do not guarantee approval. The SEC will now review these filings and may open the process for public comments. The agency can either approve or reject the proposals, or initiate further proceedings to determine whether the proposed rule change should be disapproved.

The SEC’s decision could come within several months, but given the growing interest in crypto ETFs, the outcome of this filing is crucial for both the future of XRP and the broader cryptocurrency industry.