SEC Acknowledges Spot XRP ETF Application
The U.S. Securities and Exchange Commission (SEC) officially acknowledged Bitwise’s application for a spot XRP exchange-traded fund (ETF) on Tuesday, filed through the Cboe BZX Exchange. This recognition represents a key step toward integrating regulated XRP investment products into traditional financial markets.
SEC’s Review Process Begins as Spot XRP ETF Filings Multiply
According to the February 18 filing, the SEC will now open a 21-day public comment period before deciding whether to approve, reject, or extend its review for up to 240 days.
The proposal emphasizes XRP’s role as a fast, low-cost solution for cross-border transactions, distinguishing it from Bitcoin and Ethereum, which are widely considered stores of value. The acknowledgment follows recent similar filings from Grayscale and 21Shares, while applications from WisdomTree and Canary Capital remain under review. With these additions, there are now nine outstanding XRP ETF applications, including earlier submissions by CoinShares and ProShares. The proposal highlights XRP’s liquid, decentralized, and resilient market structure, referencing last year’s SEC v. Ripple Labs ruling, which determined that Ripple’s programmatic sales of XRP did not constitute securities transactions. If approved, the ETF would provide regulated investment access to XRP without requiring self-custody. The SEC is also reviewing Bitwise’s plans to mitigate manipulation risks, including using U.S.-compliant trading platforms for price sourcing and implementing a creation and redemption mechanism to prevent fraud. The acknowledgment signals progress for U.S. exchanges seeking to list crypto ETFs and reflects a changing regulatory stance under President Donald Trump’s second term. Trump has pledged to make the U.S. “the world’s crypto capital” and has appointed pro-crypto regulators, including Acting SEC Chair Mark Uyeda and Acting CFTC Chair Caroline Pham, both of whom have pushed for clearer regulatory guidelines.
Broader ETF Landscape: Dogecoin, Solana, and Alternative Crypto Products
The shift in regulatory sentiment has led to a surge in ETF filings following SEC Chair Gary Gensler’s resignation. Bloomberg analyst Eric Balchunas noted that 33 new crypto ETF applications were submitted within days, with projections reaching 50 soon.
Issuers have now filed to list ETFs for alternative cryptocurrencies, including Solana (SOL), Litecoin (LTC), and even memecoins like Dogecoin (DOGE), Official Trump (TRUMP), and Bonk (BONK). Bloomberg ETF analyst James Seyffart recently forecast that the SEC would formally acknowledge XRP and Dogecoin ETFs within days, estimating a 65% approval chance for XRP and 70% for Dogecoin. However, Seyffart cautioned that an XRP ETF remains unlikely until the ongoing Ripple litigation is fully resolved. Meanwhile, existing spot Bitcoin and Ethereum ETFs are now seeking approval for new features such as staking and in-kind redemptions. Additionally, issuers await regulatory green lights for planned crypto index ETFs designed to hold diversified token baskets.
Institutional Demand vs. Regulatory Uncertainty
The rush of ETF applications underscores a growing appetite among institutional investors for broader crypto exposure. However, demand alone isn’t enough—approval hinges on whether the SEC sees XRP as sufficiently distinct from previous regulatory concerns. As legal battles around Ripple continue to cast a shadow over the asset’s future, the question is whether an ETF approval could reshape perceptions of XRP’s place in the market or if the regulatory overhang remains too substantial to ignore.