Major Fund Managers File for First US Spot XRP ETFs Amid Regulatory Shift

In a significant development, several major fund managers have filed to launch the first spot XRP exchange-traded funds (ETFs) in the United States, marking a pivotal moment in cryptocurrency ETF development. This move comes amidst a favorable regulatory climate, with the acting chair of the SEC, Mark Uyeda, bringing a more crypto-friendly approach compared to his predecessor.

The filing from Cboe BZX includes four key players: Canary Capital, WisdomTree, 21Shares, and Bitwise. Multiple fund managers, including Bitwise and WisdomTree, are set to introduce spot XRP ETFs, signaling potential growth in the crypto market amid a shifting regulatory landscape. Currently, XRP stands as the fourth-largest cryptocurrency by market capitalization, further increasing the potential impact of these ETFs on the market.

The recent filings by asset managers to introduce XRP ETFs signify a burgeoning interest in cryptocurrency investments and a shift in regulatory dynamics. Cboe BZX Exchange’s 19b-4 filings are crucial as they inform the Securities and Exchange Commission (SEC) of proposed rule changes that could set a precedent for future crypto funds.

With the SEC once characterized by cautious measures under former Chair Gary Gensler, the transition to a more crypto-friendly environment under Mark Uyeda signals potential growth for spot ETFs. Notably, the move to allow Bitcoin and Ether ETFs earlier this year is indicative of a broader acceptance of cryptocurrency as a legitimate asset class. Analysts are observing increased activity from issuers exploring various crypto-related ETF products in anticipation of a regulatory shift influenced by a changing political landscape.

Bitwise, recognized for its pioneering efforts in cryptocurrency ETFs, was the first to file with the SEC, setting the stage for other fund managers like Canary Capital, WisdomTree, and 21Shares to follow suit. Each firm’s filing, including detailed structures of their respective ETFs, indicates a well-researched approach to integrating XRP into investment portfolios.

The potential approval of spot XRP ETFs aligns with bullish forecasts from financial institutions. For instance, JPMorgan estimates that new spot XRP ETFs could generate between $4 billion to $8 billion in net new assets within the first year. This growing enthusiasm may drive increased trading volumes and price stability