The US Securities and Exchange Commission (SEC) has taken a new step toward allowing new crypto exchange-traded funds (ETFs), indicating ongoing developments in digital asset compliance. The SEC acknowledged Chicago’s Cboe Exchange’s applications to seek consent to list and trade spot ETFs from Bitwise, Canary, WisdomTree, 21Shares, etc. The SEC also acknowledged Grayscale’s application for Solana and Litecoin ETFs.
XRP is One Step Closer to Launching Crypto ETF!
XRP exchange-traded funds are closer to becoming a reality. Chicago Board Options Exchange (Cboe) recently submitted four 19b-4 application forms to the Securities and Exchange Commission to seek approval for XRP ETF applications. Bitwise, Canary, WisdomTree, and 21Shares, the four firms that are on the verge of launching exchange-traded products that track XRP, are optimistic about the recent developments in the Crypto ETF landscape.
The SEC’s acknowledgment doesn’t guarantee approval, but it is definitely the next step toward making crypto ETFs a reality. The Securities and Exchange Commission will have 240 days to make a final decision regarding the new financial products. The SEC previously refused to acknowledge several applications for ETFs and told Cboe to withdraw its previously submitted 19b-4s.
Eleanor Terret reported that the Cboe had just filed the 19b-4s on behalf of BitwiseInvest and CanaryFunds for their $XRP ETFs. She explained that the 19b-4 forms represented the next step in the ETF approval process following the issuers’ filings of their S-1s. According to her, the 19b-4s essentially requested the SEC to permit the listing and trading of the prospective ETFs.
She noted that once the Securities and Exchange Commission (SEC) acknowledges receipt of the filing, a 240-day period opens during which it must either approve or deny the products. Terret emphasized that the filing of the 19b-4s did not guarantee acknowledgment or approval by the SEC, but she mentioned that the agency had recently recognized the 19b-4 filings from CanaryFunds and Grayscale to list and trade $LTC ETFs. She concluded by stating that it remains to be seen if they would do the same for $XRP.
Litecoin (LTC) and Solana (SOL) ETF acknowledged by the Securities and Exchange Commission
The Securities and Exchange Commission has also acknowledged a series of other Crypto ETF applications. On Thursday, the SEC acknowledged Grayscale’s filing for a litecoin ETF and a filing for Solana (SOL) exchange-traded funds. The Securities and Exchange Commission has time until October to decide on the application. The acknowledgment cannot guarantee ETFs, the SEC can either approve or deny the application.
Eleanor Terret, the renowned journalist, noted that it was very noteworthy that the SEC had acknowledged Grayscale’s $SOL filing because, as James mentioned, the Gensler SEC had alleged in prior litigation that Solana might be a security. She pointed out that the same SEC had asked the Cboe to withdraw issuers’ Solana filings just a few weeks prior when Gensler was still at the helm. Terret suggested that this might be a good sign for other assets like $XRP, which had been deemed securities under the prior administration and could now be receiving a second look.
Administration Changes in The Securities Exchange Commission Paving the Path to New Dimensions to Crypto ETFs?
Crypto under Donald Trump and his pro-crypto fellows will be a hot topic in the crypto industry and American Politics. The recent acknowledgments for projects like XRP, SOL, and LTC indicate the advancements approaching the realm of cryptocurrency exchange-traded funds. The latest trend explains that the crypto industry is becoming at ease with the newly arrived SEC administration and their plans to look beyond Bitcoin (BTC) and Ether (ETH) exchange-traded funds. The filings and the acknowledgment from the SEC do not imply the potential release of ETFs but it indicates the changing trends occurring in the cryptocurrency arena since the administrational change in the Securities of Exchange Commission.
