The U.S. Securities and Exchange Commission (SEC) acknowledges Bitwise’s prospective XRP ETF as commodity-based trust shares.
On Tuesday, the SEC acknowledged another exchange filing relating to XRP ETFs. Specifically, the regulator accepted Cboe BZX Exchange’s bid to list Bitwise’s proposed XRP ETF shares.
Bitwise XRP ETF Filing
Notably, Bitwise was the first asset manager to submit an S-1 application to launch an XRP ETF in the U.S. Following its application, several prospective issuers, including WisdomTree and 21Shares, also applied to launch a similar product.
A few months after Bitwise’s application, Cboe BZX Exchange submitted a 19b-4 filing to list the fund on its platform. The SEC has acknowledged the filing and kicked off the Bitwise ETF decision process.
The SEC typically has a maximum of 240 days from the filing’s publication in the Federal Register to approve or reject the application.
SEC Recognizes Bitwise XRP ETF as a Commodity
Meanwhile, popular XRP community figure Chad Steingraber called the public’s attention to an essential part of the SEC’s acknowledgment.
Steingraber shared an excerpt from the acknowledgment showing that the SEC recognized the Bitwise XRP ETF as ‘Commodity-Based Trust Shares.’
Bitwise XRP ETF -BZX- acknowledged by the SEC as a “commodity based trust”
Ain’t that something’? 😉 https://t.co/Z0UqwqF1qD pic.twitter.com/LH8YY7dSPp
— Chad Steingraber (@ChadSteingraber) February 18, 2025
It bears mentioning that shares of a commodity-based trust grant investors exposure to the price movements of a commodity, which in this case is XRP.
This development sparked speculation with several investors suggesting that the SEC now considers XRP a commodity. On the contrary, acknowledging the Bitwise XRP ETF as commodities-based trust shares does not indicate that the regulator views XRP as a commodity.
A similar speculation emerged recently after the SEC acknowledged 21Shares XRP ETF. However, FOX Business Journalist Eleanor Terrett dismissed this speculation, noting that the regulator only acknowledged prospective issuers’ applications to list XRP as a commodity under a securities wrapper.
She suggested that the SEC’s view about XRP’s regulatory status will become clearer during approval.
SEC Acknowledges Three XRP ETF Applications in Five Days
In the meantime, the SEC has acknowledged three applications relating to XRP ETF in less than one week. The regulator first recognized Grayscale’s XRP ETF on February 13, followed by 21Shares’ application the following day.
It acknowledged the Bitwise XRP ETF on February 18, bringing the total number of recognized filings to three within five working days.
While these recognitions do not guarantee that the SEC will approve any of the applications, they do raise the approval odds, which Bloomberg analyst James Seyffart previously set at 65%.
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