On Thursday, the Chicago Board Options Exchange (Cboe) officially submitted four separate applications to the U.S. Securities and Exchange Commission (SEC) for the approval of spot XRP exchange-traded funds (ETFs). The applications, filed on behalf of WisdomTree, Bitwise, 21Shares, and Canary, mark a significant push toward introducing the first spot XRP ETFs in the United States.
This move follows the recent success of Bitcoin and Ethereum ETFs, yet some Wall Street analysts remain skeptical, stating that full-scale demand for crypto-based ETFs has not yet been realized.
XRP Price Drops Despite ETF Interest
Despite growing interest from major asset managers, XRP has suffered a 25% decline over the past two weeks. The cryptocurrency had previously surged near its all-time high of $3.40 in late January, but recent market conditions have driven prices lower.
The broader crypto market downturn has been evident throughout early 2025, following the bullish momentum from late 2024, which was fueled by President Donald Trump’s reelection victory. This cooling effect has impacted investor sentiment across the industry.
Regulatory Uncertainty Surrounding XRP ETF Approvals
Cboe’s filing for spot XRP ETFs comes amid ongoing regulatory uncertainty. Unlike Bitcoin and Ethereum, which have received clearer regulatory classification, XRP’s legal status remains contested.
The applicants rely on the July 2023 court ruling in the SEC v. Ripple Labs case, which partially ruled in favor of Ripple by stating that programmatic XRP sales to retail investors do not constitute securities transactions. However, the SEC is currently appealing this decision, seeking to reverse the ruling in the Second Circuit Court.
According to Cboe’s filing, the exchange believes it is applying proper legal standards, arguing that XRP should not be classified as a security under federal law.
XRP ETFs Face Additional Challenges Compared to Bitcoin and Ethereum
A key regulatory hurdle for XRP ETFs is the lack of an established CME futures market. The SEC had previously emphasized the importance of a regulated futures market when approving spot Bitcoin and Ethereum ETFs.
Despite this challenge, asset managers are taking strategic measures to increase their chances of approval. These include:
- Sourcing XRP from secondary markets rather than directly from Ripple Labs.
- Enhanced surveillance and market monitoring to prevent manipulation.
- Custody with licensed third-party custodians to ensure security.
- Cold storage solutions for added protection.
- Intraday trading halt mechanisms to enhance investor safety.
XRP ETF Decision Timeline
The SEC has 45 days to review these applications upon publication in the Federal Register. This period can be extended up to 90 days, depending on the regulatory process.
Meanwhile, Cboe has also resubmitted four Solana ETF applications, addressing concerns previously raised by the SEC in 2024. These included key issues such as market integrity, investor protection, and regulatory oversight.
If XRP ETFs receive approval, it could signal a new era of institutional adoption for XRP, making it the third major cryptocurrency after Bitcoin and Ethereum to secure ETF legitimacy in the U.S.
