Cboe BZX Submits Application for First-Ever XRP ETF

On February 6, 2025, the Cboe BZX exchange submitted, on behalf of four asset managers, applications for the creation of spot exchange-traded funds (ETFs) based on XRP. The companies involved are Canary Capital, WisdomTree, 21Shares, and Bitwise. These filings mark a significant milestone in the expansion of crypto-related financial products in the United States.

Crypto: the SEC faces a new wave of XRP ETFs

Last week, on January 28, 2025, Cboe BZX had resubmitted the requests for Solana ETFs, representing companies such as Canary, 21Shares, Bitwise, and VanEck. This week, the crypto exchange is submitting the filings known as form 19b-4, informing the SEC of a proposed rule change, thus initiating the regulatory review process.

This initiative reflects a notable increase in the number of crypto-related ETF proposals, signaling a growing interest from asset managers in these innovative financial products. Especially since the SEC is now led by interim chair Mark Uyeda, known for his favorable stance towards cryptocurrencies.

An uncertain outcome?

Spot ETFs provide investors with direct exposure to the price of the underlying assets, in this case, XRP, without requiring direct ownership of the crypto. This allows for more accessible and potentially less risky participation in the cryptocurrency market, while benefiting from the regulated structure of traditional stock markets.

The approval of these ETFs by the SEC could pave the way for wider adoption of cryptos by institutional and retail investors, by providing financial instruments compliant with existing regulations. However, the regulatory review process is rigorous, and the outcome of these applications remains uncertain.

Recent filings by Cboe BZX for spot ETFs based on XRP, on behalf of leading asset managers, illustrate the ongoing evolution of the crypto market towards more integrated and accessible financial products. The outcome of these proposals could have a significant impact on the future of investment in digital assets in the United States.