- Financial firms are pushing for XRP ETFs to bring crypto to traditional markets.
- SEC’s approval of XRP ETFs could shape future crypto investment products.
- XRP’s price remains stable despite increasing ETF filings and market interest.
Several financial firms, including WisdomTree, Bitwise, 21Shares, and Canary Capital, have filed applications with the Chicago Board Options Exchange (CBOE) to launch exchange-traded funds (ETFs) based on XRP.
These filings are a step towards accepting XRP into mainstream financial markets. If approved, these ETFs could provide institutional investors with a legal investment way to gain exposure to digital assets, further bridging the gap between traditional finance and crypto assets.
The filing of 19b-4 forms by Bitwise and Canary Capital marks an important milestone in the ETF approval process. Filed with the U.S. Securities and Exchange Commission (SEC), these forms are basically asking for permission to list and trade the proposed XRP ETFs.
Growing Interest in Crypto ETFs
The filing of the 19b-4s follows the initial S-1 registrations submitted by the issuers earlier, with Bitwise filing for its spot XRP ETF in October 2024 and Canary Capital following closely in November. According to FOX reporter Eleanor Terrett, who posted on his X account, the SEC now has a 240-day window to either approve or deny the applications once it acknowledges receipt of the filings.
However, XRP is not the only cryptocurrency seeing an influx of ETF proposals. Litecoin (LTC) has also caught the attention of investors, with the SEC reviewing applications for a spot Litecoin ETF. This surge in ETF filings comes as regulators make broader moves to include digital assets in traditional financial structures.
Related: Purpose Investments Seeks Approval for Canada’s First XRP ETF
The SEC’s approval of spot Bitcoin and Ethereum ETFs in 2024 further points to this shift, with increased interest in ETFs for institutional investors to gain exposure to digital assets.
SEC’s Decision is Key
The SEC’s decision to approve or reject these ETF proposals will play a key role in shaping the future of XRP ETFs. Additionally, Grayscale Investments’ recent request for public comments on its proposed spot, Litecoin ETF, further shows that the regulatory body is actively looking at crypto-backed investment products.
Related: Litecoin ETF Could Beat XRP in ETF Race, Despite Multiple SEC Filings
Despite the wave of ETF filings, XRP’s price has remained relatively stable. As of the time of writing, XRP was trading at $2.34, recording a drop of 2% over the last 24 hours.
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