Ripple Spot ETF Timing: SEC Countdown Begins as Cboe Files for XRP ETFs

Key Takeaways

• The SEC’s decision on spot XRP ETF applications is approaching, with anticipation building among asset managers.
• Five asset managers, including Bitwise and WisdomTree, have filed for spot XRP ETFs.
• Optimism is high within the crypto community, fueled by the incoming pro-crypto Trump administration.

With President Donald Trump officially taking charge on Jan. 20, the industry is hopeful that the new leadership will pave the way for a surge in crypto-based investment products in the near future.

Amid a flood of crypto exchange-traded funds (ETFs) proposals, one token is capturing the spotlight: XRP.

XRP has long been embroiled in legal battles with the Securities and Exchange Commission (SEC), and many are eager to see how the new administration’s policies might influence its fate.

Speculation Grows Over Spot XRP ETF Approval

Speculation about the approval of a spot XRP ETF has been buzzing across crypto social media following a high-profile dinner meeting  between Ripple CEO Brad Garlinghouse and President-elect Donald Trump.

Many industry watchers see Ripple (XRP) as a strong contender for ETF approval, with Garlinghouse himself hinting that XRP could be next in line.

Despite its ongoing legal battle with the SEC, which has raised questions about XRP’s regulatory status, the countdown for the first spot XRP ETF has officially begun.

On Feb. 6, Chicago’s Cboe Exchange submitted applications  to the SEC for the approval of the first batch of spot XRP ETFs, including filings from firms such as WisdomTree, Bitwise, 21Shares, and Canary.

On Feb. 10, the Nasdaq Stock Market submitted a proposed rule change  to the SEC, aiming to list and trade shares of the CoinShares XRP ETF.

What’s Next for the SEC’s XRP ETF Review?

The SEC now has 45 days to respond to the 19b-4 form submitted by Cboe for the spot XRP ETFs.

This period, governed by SEC rules, is the window in which the Commission must either approve, disapprove, or delay its decision.

However, if the SEC determines that additional time is necessary for review, it may extend this period by another 45 days.

Should the SEC accept or acknowledge the 19b-4 form, it will open the proposal for public comment. Then, the SEC will decide whether to approve or reject the ETF applications or initiate further proceedings to review the proposed rule change.

This 19b-4 filing marks a crucial milestone, signaling confidence from the exchanges that list the ETFs and offering a potential step toward market clarity.

Despite the progress, Ripple’s ongoing legal struggle with the SEC over XRP’s classification as a security may impact the timeline for launching a spot XRP ETF.

Ripple President Monica Long has acknowledged  the growing interest in crypto ETFs and subtly hinted that XRP may join the next wave of assets cleared for ETF approval.

However, until legal hurdles are cleared, the approval of an XRP ETF remains uncertain.

Launch Conditions

While the prospect of a pro-crypto regulator offers hope to the industry, it doesn’t guarantee a smooth approval process for every crypto ETF application.

For a spot XRP ETF—or even a Solana (SOL) ETF—to gain approval, the U.S. government must first establish clear regulations defining what constitutes a security and how crypto tokens are classified as assets.

Skepticism surrounded the approval of a spot Ethereum ETF, but its eventual green light has encouraged asset managers to file for a range of altcoin-based ETFs. However, the path for XRP is more complicated.

Several securities lawsuits are currently pending against major crypto exchanges, with tokens like XRP and SOL cited as potential securities.

The SEC would need to resolve these legal disputes and clarify its stance before any regulatory approval for an XRP ETF could move forward.

Eyes on XRP

XRP finally broke out in 2024, surging fivefold over the past year. The price climbed from $0.52 to a multi-year high of over $2.90 and is currently trading at $2.32.

With the introduction of a native stablecoin and the anticipated approval of a spot XRP ETF in 2025, the stage seems set for XRP to challenge its all-time high of $3.12, which was last reached in 2017.

Market analysts and XRP enthusiasts are optimistic, predicting that the token could surpass $5 in the upcoming bull cycle, fueled by the expected ETF approval.

XRP ETF Filings

Bitwise Leads the Charge

Bitwise Asset Management was the first to file for a spot in XRP ETF, making its move in October 2024.

The firm submitted an S-1 registration statement to the SEC just a day after registering an XRP trust with Delaware’s Department of State. The filing invoked a sense of euphoria among the XRP community, given that XRP was delisted from all U.S. exchanges three years ago.

Canary Capital Joins ETF Race

Canary Capital, a crypto investment firm led by former Valkyrie CIO Steven McClurg, filed  for a spot XRP ETF on Oct. 8.

This filing was the second application for an XRP ETF in the U.S., following Bitwise’s earlier submission.

21Shares Applies For XRP ETF

WisdomTree Files S-1 for XRP ETF

WisdomTree filed its S-1 registration  for a spot XRP ETF on Dec. 2, 2024.

If approved, this would mark WisdomTree’s second crypto ETF.

The filing reveals the asset manager’s plans to list the spot XRP ETF on the Cboe BZX Exchange.

However, unlike other issuers that typically include key details like custodians and ticker symbols, WisdomTree’s S-1 leaves these points unaddressed.

WisdomTree has already found success in the crypto ETF space, with its Bitcoin ETF, BTCW, reporting net inflows of $217 million. 

CoinShares Files XRP ETF Application

CoinShares is the latest to file an application for a spot XRP ETF.  

As per the filing, CoinShares will serve as the official sponsor of the ETF, while CSC Delaware Trust Company has been designated as the fund’s trustee.

Details regarding the ETF’s administrator, transfer agent, marketing agent, and custodian have not yet been disclosed.

On Feb. 10, Nasdaq Stock Market filed a proposed rule change to the SEC. The proposal seeks approval to list and trade shares of the CoinShares XRP ETF, officially named the ‘Trust.’

Is Blackrock Going To Get Involved?

Garlinghouse has hinted  at a possible partnership with BlackRock to launch an XRP ETF in the U.S.

“We think it makes sense for the XRP community overall,” Garlinghouse said, suggesting the collaboration could benefit both XRP holders and the broader crypto ecosystem.

If it materializes, the ETF could provide institutional investors easier access to XRP, potentially increasing its legitimacy and market presence.

A tie-up with BlackRock, one of the world’s largest asset managers, would signal a growing acceptance of digital assets within traditional finance.

However, nearly six months after the statement, BlackRock has yet to file an application for a spot XRP ETF.

With additional reporting from Insha Zia and Prashant Jha.