Cboe BZX Files for First Spot XRP ETFs: A Game-Changer for Cryptocurrency
Cboe BZX Exchange has officially filed 19b-4 filings for the first-ever spot XRP exchange-traded funds (ETFs) in the United States. The filings, submitted on February 6, represent proposals from asset managers Canary Capital, WisdomTree, 21Shares, and Bitwise, all aiming to list ETFs that track the price of XRP, currently the fourth-largest cryptocurrency by market value.
What Are 19b-4 Filings and Their Impact on XRP ETFs?
The 19b-4 filings are notifications to the U.S. Securities and Exchange Commission (SEC) about a proposed rule change. If approved, these filings could pave the way for the launch of the first XRP ETFs in the country. Historically, the SEC, under former Chairman Gary Gensler, approved ETFs tracking Bitcoin (BTC) and Ether (ETH) at the start of 2024. However, with the SEC now under the leadership of crypto-friendly acting Chairman Mark Uyeda, there has been a noticeable increase in crypto-related ETF filings. Analysts are closely watching how a Trump administration-influenced SEC might impact future approvals.
The Growing Trend of Crypto ETFs
The momentum behind crypto ETFs has been growing, with Cboe BZX reapplying for spot Solana (SOL) ETFs just days ago. These filings come after a previous rejection by a Gensler-led SEC in late 2024. Bitwise was the first to submit an application for an XRP ETF, filing a Form S-1 with the SEC in October. Shortly after, Canary Capital followed with its own Form S-1 for the Canary XRP Trust, and 21Shares filed for the 21Shares Core XRP Trust in November. WisdomTree also joined the list in December with its WisdomTree XRP Fund.
Other issuers are not far behind. For example, on January 30, NYSE Arca filed a 19b-4 filing to convert Grayscale’s XRP trust into a spot ETF. Additionally, Jersey-based CoinShares filed a Form S-1 for its own CoinShares XRP ETF on January 24.
XRP ETFs Could Bring Significant Investments
JPMorgan estimates that spot XRP ETFs could attract between $4 billion and $8 billion in new assets within the first year of launch. As of the latest data, XRP is trading around $2.34, showing a slight 2% decrease in the last 24 hours. Despite this, XRP has seen impressive growth recently, coming close to its all-time high of $3.40 in mid-January, a peak it first reached in January 2018, according to CoinGecko.
The Future of XRP and Crypto ETFs
With the increasing interest in crypto ETFs, the approval of spot XRP ETFs could mark a significant milestone for the cryptocurrency market. If approved, these ETFs could help bring XRP into the mainstream financial ecosystem and attract a wave of new investment. As always, investors should carefully monitor regulatory developments and market trends before making any decisions.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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