The CBOE BZX exchange has filed a request with the SEC to list and trade XRP ETFs. This is a significant development in the world of crypto ETFs. The filing was made by WisdomTree, Bitwise, 21Shares, and Canary Capital, who want to create exchange-traded products that track XRP, which is the fourth-largest cryptocurrency.
This filing is part of a two-step process to launch a crypto ETF. Once the SEC acknowledges the filing, it will be published in the Federal Register, marking the start of the approval process. Experts believe that with a pro-crypto administration and a new SEC chair, XRP spot ETFs could be approved as early as this year.
The filing states that approving this proposal would give U.S. investors access to XRP in a regulated and transparent exchange-traded vehicle, limiting risk. Unlike other crypto ETFs, XRP does not have an established futures market on the Chicago Mercantile Exchange. To improve the chances of approval, WisdomTree plans to source XRP from secondary markets instead of Ripple Labs, avoiding any direct ties with the company involved in the SEC’s legal battle.
Interest in XRP ETFs has grown since Ripple Labs achieved a partial legal victory in its SEC lawsuit in July 2023. This favorable ruling has been referenced in ETF applications. As the approval process continues, there is anticipation that institutional investors will enter the market. The launch of XRP ETFs, along with similar products for other top cryptocurrencies like Solana, would provide greater exposure to the digital asset space for investors.
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