The Cboe BZX Exchange has submitted form 19b-4 filings to the US Securities and Exchange Commission (SEC) to list and trade spot XRP exchange-traded funds (ETFs) for several asset managers.
The issuers involved include Bitwise Investment, 21Shares, Canary Funds, and WisdomTree.
XRP ETFs One Step Closer?
Form 19b-4 is utilized by self-regulatory organizations, such as stock exchanges, to propose rule changes to the SEC. It is a critical component in introducing new financial products, including ETFs, to the market.
Fox Business reporter Eleanor Terrett highlighted the procedural nature of these filings.
“The filing of the 19b-4’s does not guarantee acknowledgment or approval by the SEC,” she stated on X (formerly Twitter).
After the SEC confirms receipt of the filing, a 240-day period begins during which it must approve or deny the products. If the SEC approves this filing, it could lead to the introduction of XRP as a tradable ETF.
In fact, Grayscale has also filed a 19b-4 application to establish an XRP ETF, joining four other asset managers in this effort.
The potential of such an ETF appears quite significant. According to a recent report from JPMorgan, an XRP ETF could generate between $6 billion and $8 billion in revenue within the first 6 to 12 months.
On the prediction platform Polymarket, the likelihood of an XRP ETF receiving approval in 2025 has been strikingly high. The odds stood at a notable 80% at the time of this report.
This development follows the SEC’s recent acknowledgment of the NYSE’s 19b-4 filings for Grayscale’s Litecoin (LTC) and Solana (SOL) ETFs.
This was the second acknowledgment for Litecoin and the first for Solana. The acknowledgment was significant due to Solana being classified as a security.
“This *MAY* be a good sign for other assets like XRP that were deemed securities under the prior administration that could now be getting a second look,” Terrett wrote.
Meanwhile, Cboe’s amended filings for a Solana ETF have yet to receive an acknowledgment from the SEC.
Nonetheless, the enthusiasm hasn’t done much for XRP in terms of market performance. It has experienced a downward trend since mid-January.
Over the past week alone, the cryptocurrency has seen a substantial depreciation, losing more than 25% of its value. At the time of writing, the altcoin was trading at $2.30, a 6.2% decrease over the past day.
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