Cboe Submits XRP ETF Applications to SEC From WisdomTree, Bitwise, 21Shares, Canary
Chicago’s Cboe Exchange has submitted four separate applications to the U.S. Securities and Exchange Commission (SEC) for XRP exchange-traded funds (ETFs) from WisdomTree, Bitwise, 21Shares, and Canary.
The filing comes as XRP faces a steep decline, falling 24% over the week, despite approaching its all-time high of almost $3.40 last month.
Unlike previous crypto ETFs, XRP lacks an established futures market on the Chicago Mercantile Exchange (CME), a key component in the SEC’s decision-making process for Bitcoin and Ethereum approvals.
WisdomTree is implementing safeguards including sourcing XRP from secondary markets rather than Ripple Labs to increase the likelihood of approval.
Other protective measures including enhanced market surveillance, third-party custody solutions, cold storage for XRP holdings, and mechanisms to suspend trading if necessary are also being implemented by asset managers.
Interest in XRP ETFs follows a partial legal victory from July 2023 in the ongoing SEC v. Ripple Labs case, which was heavily referenced in the applications.
In October 2024, the SEC issued an initial notice of appeal Judge Analisa Torres's August ruling in which Ripple was fined $125 million. Garlinghouse described Toress's ruling as a "victory for Ripple."
Judge Torres ordered Ripple to pay $125 million in civil penalties and imposed an injunction against future securities law violations. Torres found that 1,278 institutional sale transactions by Ripple violated securities law.
Last month, the SEC filed challenges against the July 2023 court ruling that partially dismissed claims against the company. In response to the latest filing, Ripple chief legal officer Stuart Alderoty said the appeal was "expected" but also "just noise."
Cboe isn't the only exchange seeking XRP ETF approvals. Just last week, NYSE Arca filed to convert Grayscale's XRP Trust into an ETF with the SEC.
According to the 19b-4 filing submitted on Thursday, Coinbase Custody Trust will serve as the custodian for the fund and BNY Mellon Asset Servicing will act as the transfer agent.
The SEC now has 45 days to review the applications once they are published in the Federal Register, with the possibility of extending the process by up to 90 days.