Key dealers
- Four large asset managers have submitted applications for Spot XRP ETFs to Sec.
- SEC’s decision can set a precedent for future crypto ETF applications.
The race to launch a spot XRP ETF in the United States is officially on. CBOE exchange on Thursday submitted four separate 19B-4 forms with Sec, seeking Approval for a rule change to list and trading shares in Spot XRP ETFs from WisdomThe Here and thereThe 21 Sharesand Canary.
Access Managers new Notifications follow their S-1 posts last year, with Bit leading. These come after Tot Bitcoin and Ethereum ETFS were approved in early 2024.
Unlike Bitcoin and Ethereum, XRP still definitely lacks regulatory clarity. Ripple Lab’s legal struggle with Sec continues, with SEC that appeals to Sec v. Ripple Labs that controls the other circle. SEC is trying to reverse the lower court’s decision that programmatic sales to retail investors did not constitute investment contract offers.
In their applications today, all applicants use July 2023 Sec v. Ripple Lab’s decision – which found that XRP is not a security – to support their argument that XRP does not meet the legal definition of a security.
“In light of these factors and in accordance with the applicable legal precedent, especially as applied in Sec v. Ripple Labs, the sponsor considers that it applies the right legal standards to make a good troo mood that it believes that XRP is not under these circumstances a security according to federal law in light of the uncertainties located in Application Howey and Reves -Testerna, “read the archiving.
Although they lack a CME-Future market-a historical Sec requirement for ETF approvals-in-law the applicants that alternative measures, such as analysis on the chain, price monitoring and market structure analysis, offer sufficient protection against fraud and manipulation.
They also emphasize a secondary market strategy and note that ETFs would source XRP from exchanges and trading platforms, rather than directly from Ripple Laboratories, where Sec previously identified violations of the Securities Act.
The 19b-4 archiving is a legal requirement for new ETF lists. SEC has 45 days from Federal Register Publication to review the archiving and make a decision. The controller may approve, reject or initiate procedures to determine whether the rule change should refrain. This review period may be extended to 90 days if Sec provides reasoning or If Cboe Agree.
Recently applied grayscale on convert their XRP confidence to a stock exchange -traded fund at NYSE ARCA to give broader access to XRP with institutional surveillance.
This is a developing story.
