US SEC Acknowledges Bitwise XRP ETF Filing with 21-Day Comment Period
The US Securities and Exchange Commission (SEC) acknowledged Cboe BZX Exchange's filing to list and trade shares of the Bitwise XRP ETF on February 18. Interested parties can submit comments within 21 days regarding the proposed rule change.
- The 19b-4 filing is a critical step for approval or rejection of the ETF.
- The SEC will assess compliance with investor protection measures against fraud and market manipulation.
- The SEC indicated that XRP may be classified as a commodity, similar to Bitcoin and Ethereum.
- Bitwise ETF applicant has no ties to Ripple Labs.
“The sponsor believes that it is applying the proper legal standards in making a good faith determination that XRP is not a security under federal law...”
XRP ETF Approval Prospects
- Bloomberg analysts estimate a 65% chance of SEC approving the spot XRP ETF soon.
- Prediction platform Polymarket indicates a 78% likelihood of approval by December 31, 2025.
- The SEC has previously recognized spot XRP ETF filings from 21Shares and Grayscale Investment, but not from Canary Capital or WisdomTree.
- Ripple Labs CEO Brad Garlinghouse anticipates imminent ETF approval.
The message from the market is clear – institutional interest in XRP products is stronger than ever...
Market Impact
- Increased institutional demand for Ripple products has led to bullish momentum for XRP over the past two quarters.
- The XRP price broke out of a multi-year consolidation pattern, influenced by regulatory changes and institutional interest.
- Ripple Labs is focused on developing the XRPL network for multi-chain DeFi protocols, positioning XRP for significant growth.
- Potential approval hype could result in a sell-the-news scenario, similar to past ETF events.