XRP ETF Battle Royale: The Countdown Begins!
Hold onto your hats, crypto enthusiasts! The frenzy to launch a groundbreaking spot XRP ETF in the U.S. is heating up, and it’s a fierce four-way race that you won’t want to miss. On Thursday, the Cboe Exchange took center stage, submitting a staggering FOUR separate 19b-4 forms to the SEC. That’s right—the heavyweight contenders are none other than WisdomTree, Bitwise, 21Shares, and Canary, all vying for glory and the chance to trade shares of spot XRP ETFs!
Will XRP Finally Get Its Moment in the Sun?
This dramatic filing follows last year’s S-1 applications, with Bitwise leading the charge. The stakes couldn’t be higher, especially considering that just recently, the SEC gave the green light to spot Bitcoin and Ethereum ETFs. Could this mean XRP is next? If approved, this landmark decision will send shockwaves through the crypto world and pave the way for future ETF applications!
But hold your applause—there’s a twist! Unlike its crypto counterparts, XRP remains shrouded in uncertainty due to Ripple Labs’ ongoing legal battle with the SEC. The agency is desperately appealing the SEC v. Ripple Labs ruling, which controversially stated that Ripple’s programmatic sales to retail investors didn’t qualify as investment contracts. Talk about a plot twist!
The Legal Tango: A Battle of Compliance and Clarity!
In a bold move, all four applicants are leveraging the July 2023 SEC v. Ripple Labs ruling to argue that XRP doesn’t fit the legal definition of a security. The excitement is tangible! “With the evidence at hand and the weight of recent rulings, we believe we have made a compelling case that XRP is NOT a security,” proclaimed one of the filing sponsors.
Yet, the specter of uncertainty looms—without a definitive CME futures market, which has often been a cornerstone requirement for ETF approvals, these applicants are putting everything on the line. They argue that innovative measures like on-chain analysis and intricate market structure evaluations provide the necessary safeguards against fraud and manipulation.
The SEC’s Clock is Ticking!
The 19b-4 filing puts the SEC under pressure; they have a mere 45 days from the publication of the Federal Register to review and make a decision. Will they approve, reject, or complicate matters further with additional hearings? The tension is palpable!
Adding fuel to this electrifying fire, Grayscale has entered the ring, seeking to transform its XRP Trust into an exchange-traded fund on NYSE Arca. This move promises broader access and institutional oversight, creating even more chaos in the XRP ETF saga.
This Story is Far from Over!
As the clock ticks down and the crypto community holds its breath, one thing is crystal clear: the XRP ETF battle is only just beginning. Buckle up, folks! The outcome of this showdown could change the crypto landscape forever!
