SEC Acknowledges Bitwise XRP ETF Filing—Approval Within Reach?

The Securities and Exchange Commission (SEC) has formally acknowledged a filing for a spot XRP Exchange-Traded Fund (ETF) from Bitwise. This marks the start of the regulatory review process, which could take up to 90 days.

The filing, submitted by Cboe BZX Exchange on February 6, 2025, aims to list the Bitwise XRP ETF as a Commodity-Based Trust Share.

Regulated Access to XRP

The proposed Exchange-Traded Fund (ETF) enables regulated investment funds to access XRP while removing the need for investors to maintain self-controlled wallets.

Users can obtain XRP through trading on a regulated exchange that provides both clear pricing and simple market entry. The proposed investment structure should suit institutional and retail investors who want safe access to XRP.

The company explained that XRP functions as a tool to process swift international money transfers at minimal expenses. After receiving ETF approval, the company stated that its market characteristics match those of Bitcoin and Ethereum.

The proposal takes advantage of the legal definition established in SEC vs. Ripple Labs that programmatic XRP sales do not trigger securities laws.

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The submission reveals that growing ETF competition would generate fee decreases for investors. Such crypto investment funds can deliver better benefits.

The proposed XRP ETF is an appealing investment choice because it promises reduced expenses to investors aiming to enter the digital assets market.

XRP’s Growing ETF Market

An XRP Exchange-Traded Fund (ETF) is a subject of interest for more than one firm apart from Bitwise.

The SEC recently provided filing authorization to both 21Shares and Grayscale, which demonstrates that the product attracts increased industry interest. Two applications from Canary Capital and WisdomTree remain under official examination by the SEC.

The regulatory submission emerges amid the increasing expansion of cryptocurrency exchange-traded funds during the current government term.

Commissioner Hester Peirce leads an SEC crypto task force that examines the regulatory framework for digital assets under its scope. Crypto ETFs face better regulatory support today than past years have shown.

According to Bloomberg ETF experts James Seyffart and Eric Balchunas, the chances of XRP ETF approval are at 65%. The analysts show increasing positive expectations about future XRP ETF approval based on recent Bitcoin and Ethereum spot ETF approvals.

A successful approval of Bitwise XRP ETF would create the third primary cryptocurrency exchange-traded fund available to United States investors.

The SEC’s Decision Timeline

The SEC’s acknowledgment of Bitwise’s filing initiates a structured review process. The agency seeks public feedback on the proposed filing, which must be submitted within 21 days of the regulation being issued in the Federal Register.

The received input will help establish if the ETF satisfies current regulatory acceptance requirements.

The review time period enables the SEC to take action through approval, denial, and an extended evaluation process. Exactly the same procedure that led to Bitcoin and Ethereum spot ETF approvals also applied to the SEC from Bitwise.

The SEC’s XRP investment product decisions remain under evaluation to determine future possibilities for the U.S. market.

If successfully approved, the Bitwise XRP ETF will provide investors with a fresh method to access crypto market investments. If released, such a product would likely enhance the more widespread use of XRP throughout markets.

An approved Bitwise XRP ETF would establish XRP as an integral part of the ETF market at the same level as Bitcoin and Ethereum.

Several new crypto ETF applications appear as filing occurs. Firms pursue opportunities by taking advantage of shifting regulations alongside emerging market situations. The SEC’s ultimate ruling will decide XRP’s fate in becoming one of the digital assets with ETF approval.