- The SEC has acknowledged Bitwise’s XRP ETF filing, recognizing it as a Commodity-Based Trust, marking a significant step in the approval process.
- While this does not confirm XRP’s classification as a commodity, it raises the odds of ETF approval, with analysts estimating a 65% chance of success.
The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Bitwise’s proposed XRP exchange-traded fund (ETF) as a commodity-based trust share, marking a significant development in the ongoing regulatory landscape for crypto. The recognition signals progress in the SEC’s review process, although it does not necessarily indicate imminent approval.
SEC Accepts Bitwise’s XRP ETF Filing
On February 18, the SEC acknowledged a filing from Cboe BZX Exchange to list Bitwise’s XRP ETF, making it the latest in a series of crypto-related ETF applications under regulatory consideration. Notably, Bitwise was the first asset manager to submit an S-1 application for an XRP ETF in the United States. Following Bitwise’s lead, other firms, including WisdomTree and 21Shares, also filed applications for similar products.
Cboe BZX Exchange’s 19b-4 filing, which was submitted a few months after Bitwise’s initial application, set the stage for the SEC’s acknowledgment. Under regulatory guidelines, the SEC now has a maximum of 240 days from the filing’s publication in the Federal Register to either approve or reject the proposal.
A key aspect of the SEC’s acknowledgment was its classification of the Bitwise XRP ETF as a commodity-based trust share. This classification suggests that the ETF is designed to provide investors exposure to XRP’s price movements, akin to other commodity-based funds.
This recognition fueled speculation among investors that the SEC may be leaning toward viewing XRP as a commodity rather than a security. However, industry experts caution against drawing definitive conclusions.
FOX Business journalist Eleanor Terrett previously addressed similar speculation following the SEC’s acknowledgment of 21Shares’ XRP ETF, clarifying that the recognition only applies to the ETF structure rather than the classification of XRP itself. The SEC’s ultimate stance on XRP’s regulatory status will likely become clearer during the final decision-making phase of the approval process.
A Surge in XRP ETF Filings
Bitwise’s filing is just one of several XRP-related ETF proposals the SEC has recently acknowledged. Within a span of five days, the regulator recognized applications from Grayscale (February 13), 21Shares (February 14), and Bitwise (February 18).
While the acknowledgment of these filings does not guarantee approval, it suggests increasing engagement by the SEC with the concept of XRP-based ETFs. Bloomberg ETF analyst James Seyffart has estimated a 65% chance of approval for XRP ETFs, reflecting cautious optimism within the crypto investment community.
The SEC’s recognition of Bitwise’s XRP ETF as a commodity-based trust represents a significant milestone in the evolving landscape of crypto ETFs. While this classification does not imply outright approval or confirm XRP’s regulatory status as a commodity, it marks a crucial step forward. As the decision timeline progresses, market participants will closely watch for further signals from the SEC regarding XRP’s role in the regulated investment landscape.