Cboe has filed four separate 19b-4 applications with the US Securities and Exchange Commission (SEC) to introduce spot XRP exchange-traded funds (ETFs).
The filings, submitted on behalf of WisdomTree, Bitwise, 21Shares, and Canary, mark a critical step in seeking regulatory approval to list and trade these investment products.
These 19b-4 applications follow the issuers’ S-1 filings, moving the proposals closer to regulatory consideration. Once the SEC acknowledges receipt, the agency has a 240-day window to review and decide whether to approve or reject the ETFs.
Ripple CEO Brad Garlinghouse responded to the filings with a clock emoji, suggesting the regulator’s decision is on the horizon. Garlinghouse has previously maintained that an XRP ETF is inevitable, reinforcing expectations that such investment products will eventually gain approval.
Ripple pointed out that the wave of ETF applications from so many issuers reflects the growing institutional interest in XRP-related investment products.
ETF filing details
The proposed XRP ETFs will track the price of XRP, the fourth-largest crypto, by market capitalization.
According to Cboe, authorized participants will not engage in direct XRP transactions during the creation or redemption of the ETF. Instead, the structure ensures exposure to XRP’s price movements without requiring fund managers to buy or hold the asset directly.
Additionally, the application compares the approval process of spot Bitcoin and Ethereum ETFs.
Cboe pointed out that while XRP does not have a futures market, the SEC had approved Bitcoin and Ethereum ETFs despite the CME futures market for both assets not being considered of “significant size.”
The filing argues that alternative mechanisms exist to mitigate fraud and market manipulation risks, making a surveillance-sharing agreement unnecessary for XRP ETFs.
The filing stated:
“There are sufficient ‘other means’ of preventing fraud and manipulation that warrant dispensing of the surveillance-sharing agreement with a regulated market of significant size, as was done with both Spot Bitcoin ETPs and Spot ETH ETPs, and that this proposal should be approved.”
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