CBOE BZX Seeks SEC Nod for XRP Trading Amidst Regulatory Shift

CBOE BZX Platform Eyes XRP Trading Amidst New Developments

The crypto landscape is witnessing significant developments, with CBOE BZX submitting an official application to the SEC to trade spots and list XRP ETFs. This move signals a shift towards a more crypto-friendly environment, as the US government appears to be adopting a more favorable stance on cryptocurrencies.

The filing, submitted under the 19B4 rule, allows regulatory bodies to change rules with the help of SEC guidelines. The application is for Canary Capital, WisdomTree, Bitwise, and 21Shares, which aim to launch products tracking XRP, the fourth-largest crypto by market capitalization.

This filing is the second part of a two-step process for launching crypto ETFs. If the proposal is approved, it will be published in the Federal Registry. Analysts and experts believe this move comes at an opportune time, given the US government's recent shift in its trajectory towards cryptocurrencies.

The filing states that approving the proposal would provide US investors with access to XRP in a regulated and transparent exchange-traded vehicle, thereby limiting risk to US investors. Unlike other crypto ETFs, XRP lacks an established futures market in the CME or Chicago Mercantile Exchange, which is a key component of the SEC's decision-making process for ETH and BTC approvals.

WisdomTree has proposed a solution to improve the chances of getting the approval accepted. The clause states that it wants to source XRPs from secondary markets and not Ripple Labs. This strategic move removes Ripple Labs from the equation and reduces the chances of the application being rejected. Given Ripple Labs' ongoing legal battle with the SEC, removing them from the equation frees the application from potential liability and improves its overall chances of being selected.