SEC Greenlights XRP ETF Trading: Crypto Goes Wall Street Bureaucratic
Published Date: 2/24/2025
Notice
Summary
The Cboe BZX Exchange wants to start listing and trading shares of the Bitwise XRP ETF, a new fund tied to the cryptocurrency XRP. This change affects investors looking for easy access to XRP through the stock market and could open up fresh trading opportunities soon. The SEC is now asking for public feedback before giving the green light.
Analyzed Economic Effects
6 provisions identified: 5 benefits, 0 costs, 1 mixed.
ETF gives exchange access to XRP
The Exchange proposes to list the Bitwise XRP ETF so U.S. investors can buy and sell shares that track spot XRP on Cboe BZX. The Shares will not trade until the Trust's registration statement is effective, and the Trust will value Shares based on the CME CF Ripple-Dollar Reference Rate--New York Variant.
Custody safeguards for Trust XRP
The Trust will hold all XRP with a Custodian that uses segregated cold storage addresses and will record the Trust's XRP as Trust property; the Custodian will not loan, pledge, or otherwise encumber the Trust's XRP without the Trust's instruction. Cash and short-term cash equivalents (maturities under 3 months) are held with a separate Cash Custodian.
Premium/discount risk vs. trading halts
Shares may trade at a premium or discount to NAV, exposing buyers to extra cost; the Exchange may halt trading if the IIV or Pricing Benchmark stops being disseminated or if the NAV is not available to all market participants. Trading creation/redemption occurs in 10,000 Share Creation Baskets.
Exchange says ETF may lower fees and volatility
The Exchange states that listing the Bitwise XRP ETF could reduce premium/discount volatility, lower management fees through competition, and provide an alternative to directly custodying spot XRP for U.S. investors, given a market size of over $300 billion (fully diluted).
Daily NAV and 15‑second IIV transparency
The Trust will calculate net asset value (NAV) once daily using the Pricing Benchmark at 4:00 p.m. ET and will provide an Intraday Indicative Value (IIV) updated every 15 seconds during Regular Trading Hours (9:30 a.m. to 4:00 p.m. ET). The Pricing Benchmark is the CME CF Ripple-Dollar Reference Rate--New York Variant.
Retail investor delivery and risk notices
Before trading starts the Exchange will send an Information Circular to members describing creation/redemption procedures, suitability obligations, prospectus delivery requirements for newly issued Shares, and risks of trading outside Regular Trading Hours when the IIV is not updated.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373, Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651, Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-17058, Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Connectivity Schedule and Discontinue a Previously Proposed Offering
Previous / Next Documents
Previous: 2025-02944, Self-Regulatory Organizations; the Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Update the Options Clearing Corporation's Schedule of Fees
The Options Clearing Corporation is updating its fees starting February 14, 2025. They’re raising the per contract clearing fee from 2 cents to 2.5 cents and getting rid of the $55 flat fee for big transactions. These changes help OCC manage costs and keep things running smoothly for traders and firms using their services.
Next: 2025-02946, Notice of Receipt of Complaint; Solicitation of Comments Relating to the Public Interest
The U.S. International Trade Commission got a complaint about some foreign-made semiconductor devices and their parts. They want the public to share thoughts on how this might affect jobs, prices, or the economy. If you care about tech or trade, now’s the time to speak up before any decisions are made!