Cboe BZX Exchange took a significant step toward the introduction of cryptocurrency exchange-traded products (ETPs) by filing 19b-4 forms with the U.S. Securities and Exchange Commission (SEC) on behalf of Bitwise, 21Shares, and Canary Capital.
These filings are intended to list and trade spot ETPs that track XRP, the fourth-largest cryptocurrency by market capitalization, which is currently experiencing a 4.47% decline.
The 19b-4 filing marks the second phase of the process required to propose a crypto ETF in the United States. Once the SEC acknowledges the filing, it will be published in the Federal Register, thus commencing the agency’s formal approval process. Bitwise had initially submitted a registration for a spot XRP ETF in October, followed by 21Shares filing an S-1 registration statement for an XRP ETF in November.
The SEC’s prior approval of spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs in the summer of the previous year has paved the way for these new filings. The recent pro-crypto stance of President Donald Trump has led to a surge in spot crypto ETF filings in recent weeks.
SEC acting Chair Mark Uyeda, with the support of Commissioner Hester Peirce, is leading a crypto task force focused on clarifying the regulatory status of various crypto assets. Peirce has expressed a commitment to distinguishing which crypto assets should be considered securities and to streamline the registration process for firms. She also aims to provide clear guidance for the approval or disapproval of exchange-traded products.
Other financial institutions have also been active in the race to establish crypto ETFs. WisdomTree filed for a spot XRP ETF in December, and NYSE Arca submitted a 19b-4 filing on January 30 to convert Grayscale’s XRP trust into a spot crypto ETF. CoinShares (ST:CS) entered the fray with a registration statement for a "CoinShares XRP ETF" last month.
Additionally, Purpose Investments filed a preliminary prospectus with Canadian regulators for an XRP ETF on January 31, aspiring to be the world’s first issuer of an XRP ETF.
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