The U.S. Securities and Exchange Commission (SEC) has acknowledged an application for a spot XRP exchange-traded fund (ETF) from Cboe BZX Exchange which Canary Capital submitted. The spot XRP exchange-traded fund applications continue to increase in number.
The SEC enables public feedback on its filing through a 21-day period after the Federal Register publishes it. The agency will decide between approval or rejection of the proposal or start additional review procedures following feedback assessment.
The SEC requires two stages for ETF approval and a 19b-4 filing stands as the second necessary step in this process. The proposal transitions to formal review after the SEC acknowledges it.
The SEC has already received XRP ETF applications from both 21Shares and Bitwise as well as Grayscale and CoinShares. Canary Capital succeeded in getting the Litecoin ETF filing approved by the SEC.
Spot Bitcoin and Ethereum ETFs received approval last year which caused numerous new applications to emerge. The incoming Trump administration which shows support for cryptocurrencies has prompted issuers to seek multiple spot crypto ETFs.
A crypto task force under Republican SEC Commissioner Hester Peirce works to define which digital assets should be classified as securities. The regulatory direction taken by this move will determine how the United States will govern crypto in the future.
The crypto ETF market is experiencing increasing institutional demand recently. The regulatory changes from Trump admiration are making them more active. Industry leaders together with investors will monitor the SEC’s reaction to the recently submitted crypto-related applications.
Also Read: SEC Acknowledges Grayscale’s XRP & Dogecoin ETF Filings
