XRP ETF NewsSEC Acknowledges Bitwise Spot XRP ETF Filing in a Surprising Tuesday Move

In a notable development for the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has acknowledged a recent filing by the Cboe BZX Exchange to list and trade shares of the Bitwise XRP ETF. This 19b-4 filing marks a significant step in the SEC’s review process, as it evaluates whether the proposed XRP ETF adheres to robust investor protection standards. The filing also opens a 21-day period during which interested parties can submit written feedback on whether the proposed rule change complies with the law.

A Critical Milestone in the ETF Approval Process

The 19b-4 filing represents the second phase in the SEC’s rigorous assessment of the Bitwise XRP ETF. Analysts are increasingly optimistic about the eventual approval of this ETF. Bloomberg ETF analysts estimate a 65% chance of approval, while predictions on Polymarket suggest that the odds could be as high as 78% by December 2025. The heightened optimism is partly driven by the SEC’s recent stance, which implies that XRP should be considered a commodity rather than a security. This classification aligns XRP with assets like Bitcoin and Ethereum, further strengthening its regulatory standing.

According to the filing, the Bitwise XRP ETF applicant is not affiliated with Ripple Labs, which adds an extra layer of credibility and regulatory compliance to the proposal. The filing states that, based on legal precedents—particularly those referenced in the SEC vs. Ripple Labs case—the sponsor believes that XRP should not be classified as a security under federal law. This determination is made after carefully considering the uncertainties inherent in applying the Howey and Reves tests.

Growing Institutional Interest and Market Momentum

The SEC’s acknowledgment of this filing follows previous recognitions of similar applications from major players such as 21Shares and Grayscale Investment. Notably, filings from Canary Capital and WisdomTree have not yet received acknowledgment, highlighting a competitive race in the race to bring XRP ETFs to market. This surge in filings reflects the growing demand from institutional investors for regulated digital asset products.

Ripple Labs CEO Brad Garlinghouse recently remarked that the approval of a spot XRP ETF appears to be on the horizon. His comments, coupled with increased institutional activity, suggest that the market is poised for a significant shift. Financial institutions like Bitwise, CanaryFunds, and 21Shares have already submitted S-1 forms for XRP ETFs, while Grayscale has launched an XRP Trust and is in the process of converting its multi-asset fund. This flurry of activity underscores a clear message: institutional interest in XRP products is intensifying.

 Impact on XRP Price and the Broader Market

The rising institutional demand for XRP has already had a measurable impact on its market performance. After years of consolidating within a multi-year triangular pattern since 2018, XRP’s price began breaking out late last year. This breakout was largely catalyzed by an improved regulatory outlook and increased global investor participation. Over the past two quarters, XRP has shown bullish momentum, further buoyed by the anticipation surrounding ETF approvals.

Additionally, Ripple Labs is actively developing the XRPL (XRP Ledger) network to support multi-chain decentralized finance (DeFi) protocols. These technological improvements, combined with the potential introduction of regulated investment products like ETFs, position XRP for potentially exponential growth in the coming years. Furthermore, the current U.S. administration under President Donald Trump has expressed a strong interest in leveraging blockchain technology to modernize the U.S. economy, which could further benefit XRP.

 What Lies Ahead

The SEC’s recent acknowledgment of the Bitwise XRP ETF filing is a significant milestone for the XRP ecosystem. If approved, this ETF would not only provide a regulated avenue for investing in XRP but also enhance its credibility among institutional investors. With market analysts forecasting high approval odds and a positive regulatory climate on the horizon, XRP appears to be on the cusp of a transformative phase.

Investors are advised to monitor the SEC’s review process closely, as the next few months could be pivotal in determining the future trajectory of XRP. As regulatory frameworks evolve and institutional interest grows, the integration of XRP into mainstream financial products could drive substantial capital inflows, potentially leading to a major upswing in XRP’s price and market standing.