The XRP community is buzzing with excitement following a significant update from the U.S. Securities and Exchange Commission (SEC). The regulatory body has officially acknowledged Bitwise’s XRP ETF filing, signaling an important step toward the possible approval of XRP-based exchange-traded funds (ETFs).
This recognition has ignited discussions among investors, many of whom interpret it as growing institutional interest in XRP. As regulatory developments unfold, the outcome of this filing could have a lasting impact on the broader digital asset market.
Bitwise’s XRP ETF Filing Gains Regulatory Attention
With the SEC’s acknowledgment, the review process for Bitwise’s XRP ETF is now underway. The Cboe BZX Exchange submitted a 19b-4 filing to list the fund, following Bitwise’s earlier S-1 application to launch an XRP ETF in the U.S.
Other major asset managers, such as 21Shares and WisdomTree, have also filed similar applications, intensifying competition in the ETF market.
The SEC has up to 240 days from the publication date in the Federal Register to either approve, reject, or request modifications to the Bitwise XRP ETF filing. Many analysts view this as a critical step toward wider adoption of cryptocurrency-based ETFs, potentially setting a precedent for future approvals.
SEC’s Classification of XRP ETF Raises Speculation
A key point of discussion is the SEC’s decision to classify Bitwise’s XRP ETF under ‘Commodity-Based Trust Shares’. This move has led to speculation about whether the regulatory body views XRP as a commodity rather than a security.
Some investors see this as a positive signal, suggesting that XRP might receive similar treatment to Bitcoin (BTC) and Ethereum (ETH) in previous ETF filings.
However, financial experts, including FOX Business journalist Eleanor Terrett, have cautioned that this classification does not officially confirm any change in XRP’s regulatory status.
A similar situation occurred when the SEC acknowledged 21Shares’ XRP ETF filing, reinforcing that the final regulatory stance on XRP’s classification remains uncertain.
XRP ETF Approvals: Growing Optimism in the Market
The SEC’s rapid acknowledgment of multiple XRP ETF filings in a short span has fueled optimism. Within just five days, the regulator recognized:
- Grayscale’s filing on February 13
- 21Shares’ filing on February 14
- Bitwise’s filing on February 18
The quick succession of these filings has increased speculation about the possibility of approval. Bloomberg ETF analyst James Seyffart estimates a 65% chance of approval, signaling growing confidence among investors.
While an acknowledgment does not guarantee approval, the increasing attention from institutional players indicates a shifting landscape in crypto investment products.
Conclusion
The SEC’s acknowledgment of multiple XRP ETF applications marks a pivotal moment for the cryptocurrency industry. While no final decision has been made, the growing institutional interest and regulatory engagement suggest XRP’s evolving role in mainstream finance.
As investors and analysts monitor these developments, the SEC’s decision on XRP ETFs could set a precedent for future crypto ETF approvals in the U.S.
Anthony Pedro
Anthony Pedro is a seasoned crypto writer with a deep passion for blockchain technology and digital currencies. With over 4 years of experience in the cryptocurrency space, Anthony has become a trusted voice, offering insightful analysis and commentary on the latest trends, innovations, and market movements. When not writing, he is actively engaged in the crypto community, attending conferences, advising blockchain startups, and experimenting with new projects.