The United States Securities and Exchange Commission (SEC) has formally acknowledged three applications for XRP exchange-traded funds (ETFs) within a five-day span.
This development has fuelled speculation about the regulator’s stance on XRP and its potential classification as a commodity.
The SEC’s recognition of these filings, including Bitwise’s proposed ETF, marks a significant moment for XRP-focused investment products.
While an acknowledgment does not imply approval, the rapid sequence of filings highlights increasing institutional interest in XRP-based ETFs.
Bloomberg analysts suggest the approval probability has now risen to 65%, further intensifying market anticipation.
SEC reviews XRP ETFs, but approval uncertain
The SEC’s recent actions have drawn attention to the growing momentum behind XRP ETFs.
On February 13, the regulator recognised Grayscale’s XRP ETF application, followed by 21Shares’ proposal on February 14.
The latest addition came on February 18, when the SEC acknowledged Bitwise’s filing to list an XRP ETF on Cboe BZX Exchange.
NEW: As expected, the SEC just acknowledged @CBOE & @BitwiseInvest‘s XRP ETF filings
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Bitwise was the first asset manager to submit an S-1 application for an XRP ETF in the US.
Following its move, competitors like WisdomTree and 21Shares also entered the race.
In response, Cboe BZX filed a 19b-4 submission to list Bitwise’s XRP ETF, officially triggering the SEC’s review process.
The regulator now has up to 240 days to issue a decision on the fund.
Despite speculation, an acknowledgment does not indicate the SEC’s endorsement of XRP as a commodity.
Instead, it merely signals the start of the review period.
Fox Business journalist Eleanor Terrett has dismissed claims that the SEC’s actions reflect a shift in its regulatory stance, stating that the applications classify XRP ETFs as “commodity-based trust shares” under a securities wrapper.
XRP’s status still unclear
One of the key takeaways from the SEC’s acknowledgments is the classification of XRP ETFs under commodity-based trust shares.
This has sparked speculation among investors who interpret it as a sign that the SEC now views XRP as a commodity.
However, experts argue that this is a misinterpretation of regulatory terminology.
Chad Steingraber, a prominent XRP community figure, highlighted an excerpt from the SEC’s acknowledgment of the Bitwise XRP ETF that referred to it as a “Commodity-Based Trust Share.”
Bitwise XRP ETF -BZX- acknowledged by the SEC as a “commodity based trust”
Ain’t that something’? 😉
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While such classifications allow investors exposure to an asset’s price movements, they do not provide definitive clarity on XRP’s broader regulatory status.
Similar speculation emerged when the SEC recognised 21Shares’ XRP ETF application.
However, analysts have cautioned against premature conclusions.
The regulator’s final stance on XRP will likely be clarified only when it rules on these ETF applications.
Approval odds rise to 65%
Although the SEC’s acknowledgments do not guarantee approval, they signal rising institutional demand for XRP ETFs.
Bloomberg analyst James Seyffart has suggested that the probability of approval now stands at 65%, up from earlier estimates.
This projection is based on the increasing number of applications and the regulator’s recent acceptance of multiple filings in a short span.
If approved, an XRP ETF could open new avenues for institutional and retail investors, mirroring the trend observed with Bitcoin ETFs.
The SEC’s decision-making process remains complex, and past rejections of crypto-related ETFs suggest that approval is far from certain.
With the SEC now reviewing three XRP ETF applications, all eyes are on how the regulator will navigate this latest wave of crypto investment products.
Whether this results in a breakthrough for XRP ETFs or another round of regulatory delays remains to be seen.
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