XRP ETF race begins as WisdomTree, Bitwise, 21Shares, and Canary submit 19b-4 filings

The race to launch a spot XRP ETF in the US is officially on. The Cboe Exchange on Thursday submitted four separate 19b-4 forms with the SEC, seeking approval for a rule change to list and trade shares of spot XRP ETFs from Wisdomtree, Bitwise, 21shares, and Canary.

The asset managers’ new filings follow their S-1 submissions last year, with Bitwise leading the way. These come after spot Bitcoin and Ethereum ETFs were approved in early 2024.

Unlike Bitcoin and Ethereum, XRP still lacks definitive regulatory clarity. Ripple Labs’ legal battle with the SEC continues, with the SEC appealing the SEC v. Ripple Labs ruling to the Second Circuit. The SEC seeks to overturn the lower court’s decision that programmatic sales to retail investors did not constitute investment contract offerings.

In their filings today, all applicants use the July 2023 SEC v. Ripple Labs ruling—which found XRP is not a security—to support their argument that XRP does not meet the legal definition of a security.

“In light of these factors and consistent with applicable legal precedent, particularly as applied in SEC v. Ripple Labs, the Sponsor believes that it is applying the proper legal standards in making a good faith determination that it believes that XRP is not under these circumstances a security under federal law in light of the uncertainties inherent in applying the Howey and Reves tests,” the filing read.

Despite lacking a CME futures market—a historical SEC requirement for ETF approvals—the applicants argue that alternative measures, such as on-chain analytics, price monitoring, and market structure analysis, offer sufficient protection against fraud and manipulation.

They also emphasize a secondary market approach, noting the ETFs would source XRP from exchanges and trading platforms, rather than directly from Ripple Labs, where the SEC previously identified securities law violations.

The 19b-4 filing is a regulatory requirement for new ETF listings. The SEC has 45 days from Federal Register publication to review the filing and make a decision. The regulator can approve, disapprove, or initiate proceedings to determine whether to disapprove the rule change. This review period may be extended to 90 days if the SEC provides reasoning or if Cboe agrees.

Recently, Grayscale applied to convert its XRP Trust into an exchange-traded fund on NYSE Arca to provide broader access to XRP with institutional oversight.

This is a developing story.

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