SEC accepts an application for a spot XRP ETF

If approved, the ETF will provide regulated investment access to XRP without the need for self-storage

20.02.2025 - 13:15

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What’s new? The US Securities and Exchange Commission (SEC) has officially accepted Bitwise’s application for an XRP exchange-traded fund (ETF) filed through the Cboe BZX exchange. This was an important step toward integrating XRP’s regulated investment products into traditional financial markets. According to the February 18 document, the SEC will now open a 21-day public comment period before deciding whether to approve, deny, or extend the review for up to 240 days.

What else is known? The proposal emphasizes XRP’s role as a fast and low-cost solution for cross-border transactions, differentiating it from bitcoin and Ethereum, which are widely recognized as savings vehicles. Attention is also directed at XRP’s liquid, decentralized, and stable market structure. Bitwise cited last year’s SEC ruling against Ripple Labs, which determined that Ripple’s programmatic sales of XRP did not constitute securities transactions. If approved, the ETF would provide regulated investment access to XRP without the need for self-storage.

What are the prospects? The SEC is also reviewing Bitwise’s plans to mitigate manipulation risks, including using US-compliant trading platforms for price discovery and implementing a creation and redemption mechanism to prevent fraud.

The acceptance of the filing signals progress for US exchanges seeking to list cryptocurrency ETFs and reflects a shift in regulatory stance during President Donald Trump’s second term.

Trump has promised to make the United States the “crypto capital of the world” and appointed pro-cryptocurrency regulators, including acting SEC Chairman Mark Uyeda and acting CFTC Chairman Caroline Pham, who have both pushed for clearer regulatory rules.

The change in regulatory sentiment led to a surge in ETF filings following the resignation of SEC Chairman Gary Gensler on January 20. Bloomberg analyst Eric Balchunas noted that 33 new applications for crypto ETFs were filed within days, and that number is expected to reach 50 soon.

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