Introduction
The U.S. Securities and Exchange Commission (SEC) is starting to review applications filed by the Cboe BZX Exchange to list spot XRP exchange-traded funds (ETFs). These filings come from asset managers 21Shares and Bitwise, marking a significant step forward as institutional interest in cryptocurrency continues to rise.
Details of the Applications
The SEC accepted 21Shares’ application on February 14, followed by Bitwise’s on February 18. This initiates a formal review process that allows for 21 days of public commentary on these proposals. Analysts are closely watching this situation, with Bloomberg ETF experts estimating a 65% chance of SEC approval, while prediction market Polymarket raises that likelihood to 78% by the end of 2025. Alongside these filings, other firms have also shown interest in XRP ETFs, underscoring the growing institutional investment landscape.
Regulatory Evolution and Market Response
The SEC’s treatment of XRP has changed notably since its legal battles with Ripple Labs. A federal judge ruled in August 2024 that while XRP is generally not a security, it may be classified as one under specific conditions. The most recent filings refer to XRP as a commodity, similar to Bitcoin and Ethereum. After years of price stagnation, XRP’s value jumped following these ETF filings, reflecting increased institutional demand for this cryptocurrency.
In conclusion, as Ripple advances its XRP ledger for decentralized finance applications, the market will remain focused on how the SEC navigates the approval of these crypto ETFs in the upcoming months.