- Bitwise has received acknowledgment for its XRP ETF filing like other asset managers.
- With this recognition, the community is optimistic that approval for the product is imminent.
The US Securities and Exchange Commission (SEC) has acknowledged Cboe BZX Exchange’s filing to list Bitwise’s proposed XRP ETF shares. The SEC’s acknowledgment marks a significant step towards legitimizing XRP as an investment instrument for institutions. Therefore, market participants are optimistic the SEC will soon approve an XRP-based Exchange-Traded Fund (ETF).
Bitwise XRP ETF Moves Forward
In an X post, Bloomberg’s ETF analyst James Seyffart commented that the SEC has acknowledged XRP ETF filings from Cboe and Bitwise Investment.
As noted in our earlier post, Bitwise submitted an S-1 application to launch an XRP ETF in the US. The fund aims to provide investors with an alternative route for investing in XRP, the native digital asset associated with Ripple Labs.
Following Bitwise’s application, other prospective issuers, including Grayscale, 21Shares, and WisdomTree, applied to launch a similar product.
In a recent update CNF covered, the Cboe BZX Exchange submitted 19b-4 filings to the SEC to list Bitwise’s proposed XRP ETF. As James pointed out, the SEC has acknowledged Cboe’s filing and kicked off the Bitwise ETF decision process.
Under the SEC’s rules, the agency has a maximum of 240 days from the filing’s publication in the Federal Register to decide. This period gives the SEC enough time to analyze the product and decide whether to approve or reject the application.
Popular XRP community member Chad Steingraber called attention to an essential part of the SEC’s acknowledgment. Chad shared an excerpt from the acknowledgment, showing the SEC recognized the Bitwise XRP ETF as “Commodity-Based Trust Shares.”
Notably, shares of a commodity-based trust give investors exposure to the price movements of a commodity, which in this case is XRP. This development sparked discussion amongst several investors about whether the SEC now considers XRP a commodity.
A similar discussion followed the SEC’s acknowledgment of the 21Shares XRP ETF. However, FOX Business Journalist Eleanor Terrett refuted these claims. According to her, the SEC only acknowledged prospective issuers’ applications to list XRP as a commodity under a securities wrapper.
Is an XRP ETF Approval Near?
The SEC has acknowledged three XRP-based ETF applications in less than one week. This acknowledgment spree has raised questions about whether a final XRP ETF approval will happen soon.
As CNF reported last week, the regulator first recognized Grayscale’s XRP ETF on February 13. The following day, February 14, the regulator acknowledged a similar product from 21Shares.
Subsequently, the SEC acknowledged the Bitwise XRP ETF on February 18. This brings the total number of recognized XRP ETF filings to three in five working days.
Analysts see these acknowledgments as a positive sign toward a potential XRP ETF approval. Analysts James Seyffart and Eric Balchunas gave a 65% odds of XRP ETF approval by 2025. An eventual approval could boost institutional adoption and market confidence in XRP.
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