TLDR:
- SEC has formally acknowledged Bitwise’s spot XRP ETF filing, initiating a review period that could last up to 90 days
- The ETF would be listed on Cboe BZX Exchange and aims to provide regulated access to XRP investment without self-custody requirements
- XRP is positioned as a cross-border payment tool, differentiating it from Bitcoin and Ethereum’s store of value function
- Bloomberg analysts estimate a 65% chance of approval for XRP ETFs
- The filing follows successful approvals of spot Bitcoin ETFs in January 2024 and Ethereum ETFs in July
The Securities and Exchange Commission (SEC) has formally acknowledged a filing for a spot XRP Exchange-Traded Fund (ETF) from Bitwise, marking the start of the regulatory review process. The proposal, submitted by Cboe BZX Exchange on February 6, 2025, seeks to list and trade the Bitwise XRP ETF as a Commodity-Based Trust Share.
The acknowledgment triggers a review period that could extend up to 90 days, during which the SEC will evaluate the proposal’s merits and compliance with regulatory requirements. The agency has requested public comments to be submitted within 21 days of the filing’s publication in the Federal Register.
The proposed ETF aims to offer investors exposure to XRP, the native digital asset of the XRP Ledger, through a traditional financial product. XRP currently ranks as the third-largest cryptocurrency by market capitalization, trading at approximately $2.52 at the time of the filing.
Bitwise’s proposal emphasizes XRP’s primary function as a tool for fast, low-cost cross-border payments, setting it apart from Bitcoin and Ethereum, which are commonly viewed as stores of value. The filing draws attention to similarities between XRP’s market characteristics and those of Bitcoin and Ethereum, both of which received SEC approval for spot ETFs in January and July 2024, respectively.
The submission references the SEC vs. Ripple Labs court decision, which determined that programmatic sales of XRP did not constitute securities transactions. This legal precedent plays a key role in the ETF proposal’s regulatory framework.
Regulated Access to XRP
If approved, the Bitwise XRP ETF would provide investors with regulated access to XRP investment while removing the need for self-custody. Trading on a regulated exchange would ensure price transparency and streamline market entry and exit processes.
The filing suggests that competition among ETF providers could lead to lower management fees compared to existing over-the-counter crypto funds, potentially benefiting investors seeking exposure to the digital asset.
Bitwise’s application joins a growing list of spot XRP ETF proposals. The SEC has already acknowledged filings from 21Shares and Grayscale, while submissions from Canary Capital and WisdomTree await acknowledgment.
The review process comes amid a broader expansion of crypto-focused ETFs under the crypto-friendly Trump administration. A newly established crypto task force, led by Republican SEC Commissioner Hester Peirce, has been assigned to clarify which crypto assets qualify as securities.
Bloomberg ETF analysts James Seyffart and Eric Balchunas have assigned a 65% probability of approval for XRP-based exchange-traded products, reflecting cautious optimism in the market.
The 19b-4 filing represents the second phase of a two-step process required for proposing a crypto ETF to the SEC. Following acknowledgment, the filing will be published in the Federal Register, officially beginning the agency’s approval process.
The SEC maintains several options during the review period: they can approve the proposal, reject it, or “institute proceedings” for further evaluation. This process follows the established pattern seen in previous crypto ETF approvals.
If approved, the Bitwise XRP ETF would join the ranks of spot Bitcoin and Ethereum ETFs already trading on U.S. exchanges, further expanding the range of regulated crypto investment products available to American investors.
The timing of the filing coincides with increased activity in the crypto ETF space, as various issuers seek to capitalize on recent regulatory successes and evolving market conditions.
The market currently awaits the SEC’s decision, which will determine whether XRP becomes the next cryptocurrency to achieve ETF status in the United States.
