#XRPETF The U.S. Securities and Exchange Commission (SEC) has approved the receipt of the XRP exchange-traded fund application from Cboe BZX on behalf of Canary Capital, representing an important step in the landscape of exchange-traded cryptocurrency funds.
This approval initiates the formal review process that will determine whether the proposed fund will receive regulatory approval.
The SEC's procedures following approval include a public comment period, which will begin 21 days after the application is published in the federal register. This period allows the public to express their opinions before the SEC makes a decision on the proposal, which may include approval, denial, or initiating further study.
Submitting Form 19b-4 to the SEC is the second phase in a two-part process required for proposing an exchange-traded cryptocurrency fund. Once the SEC approves this application, it is officially recorded in the federal register, initiating the official approval process.
Canary Capital's application for the XRP exchange-traded fund is not the first of its kind recognized by the SEC. The regulatory body has previously acknowledged similar applications from 21Shares, Bitwise, Grayscale, and CoinShares. The SEC also approved an application from Canary Capital for a traded Litecoin fund.
The SEC's approval of Canary Capital's application comes after last year's approval of traded Bitcoin and Ethereum funds.
Following these approvals, the market has seen an increase in demand for exchange-traded cryptocurrency funds, especially as the current administration has shown a more supportive stance towards cryptocurrencies.
The establishment of a new working group for cryptocurrencies, led by Republican SEC Commissioner Hester Peirce, aims to clarify the regulatory status of various cryptocurrency assets and identify priorities for the industry in the future.