The XRP community experienced a wave of excitement today following a significant update from the U.S. Securities and Exchange Commission (SEC). The regulatory body acknowledged Bitwise’s XRP ETF filing, marking an important step toward the potential approval of XRP-based exchange-traded funds.
This recognition has sparked discussions among investors, many of whom see it as a sign of increasing institutional interest in XRP. Market participants are closely watching developments, as this move could influence the broader regulatory landscape for digital assets.
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Bitwise XRP ETF Filing Gains Regulatory Attention
With the SEC’s acknowledgment, the review process for the Bitwise XRP ETF has officially commenced. 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 US.
Other asset managers, including 21Shares and WisdomTree, have also joined the race to introduce similar products, further intensifying interest in the ETF market.
The SEC now has up to 240 days from the date of publication in the Federal Register to approve, reject, or request modifications to the filing. Investors and analysts see this as a pivotal moment for XRP’s market integration, potentially paving the way for broader acceptance of cryptocurrency-based ETFs.
SEC’s Classification of Bitwise XRP ETF Sparks Speculation
The SEC categorized Bitwise’s XRP ETF under ‘Commodity-Based Trust Shares,’ fueling speculation regarding the regulatory body’s stance on XRP. Some investors interpreted this classification as an indication that the SEC may consider XRP a commodity rather than a security.
However, financial experts, including FOX Business journalist Eleanor Terrett, have clarified that this acknowledgment does not confirm any official change in XRP’s regulatory status.
A similar scenario unfolded when the SEC acknowledged 21Shares’ XRP ETF. Analysts suggest that the true implications of the classification will become evident once a final decision on the ETF applications is made.
Until then, the acknowledgment remains a procedural step rather than a definitive regulatory stance.
SEC’s Rapid Review of XRP ETF Applications Raises Approval Hopes
The SEC’s acknowledgment of multiple XRP ETF applications within a short time frame has intensified speculation regarding potential approval. Within five days, the regulator recognized filings from Grayscale on February 13, 21Shares on February 14, and Bitwise on February 18.
This rapid succession of acknowledgments has fueled optimism among investors, with Bloomberg ETF analyst James Seyffart estimating a 65% chance of approval.
While an acknowledgment does not guarantee approval, the increased attention from institutional investors and asset managers signals growing confidence in the viability of an XRP ETF.
The SEC’s upcoming decision on these applications is expected to be a defining moment for the cryptocurrency industry, potentially shaping the future landscape for digital asset investment products.
Market participants and regulatory watchers will continue monitoring developments closely, as the outcome of these filings may set a precedent for further cryptocurrency ETF approvals in the U.S.
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