SEC Review Underway for Cboe’s In-Kind Crypto ETF Filings

• The SEC has acknowledged an amendment for Cboe’s 19b-4 filing.
• Cboe’s filing will allow in-kind creations and redemptions on BTC and ETH ETF.
• Analysts believe the SEC will approve several ETF applications this year.

The US Securities and Exchange Commission (SEC) has acknowledged an amendment for Cboe’s 19b-4 filing to allow in-kind creations and redemptions on Ark’s 21Shares Bitcoin and Core Ethereum ETF. 

In its public statement on Monday, February 10, the Commission let it be known that it received a modified amendment of the proposed rule change from the Cboe BZX exchange, and is now asking for public feedback on the subject.

Bybit Exec: SEC Move a “Win” for Crypto

Bybit exchange’s co-founder Ben Zhou considers the latest move by the SEC a positive development for the crypto industry. In his latest post on X about the matter, Zhou stated that the amended rule, if passed, will allow users to swap BTC or ETH to ETF directly, avoiding the need to use fiat as an intermediary channel.

Cboe Pushes for More Crypto ETFs

This latest notice from the SEC is just one piece of the puzzle when it comes to developments around the Commission and cryptocurrency ETFs. 

Besides this amendment filing, Cboe has also submitted independent 19b-4 filings to the SEC on behalf of Bitwise, Wisdomtree, 21Shares, and Canary Funds. These filings aim to push forward these asset managers’ proposals for spot XRP ETFs.

240-Day SEC Review Clock Starts Ticking

It is crucial to note that Cboe’s filings are basically asking for rule changes to let XRP ETFs get listed and traded, which kicks off a 240-day review period. 

During this time, the SEC has to approve, deny, or extend its decision-making process. Meanwhile, the companies applying have suggested alternative safeguards, like onchain analytics and market structure analysis, to reduce potential market risks.

Related: CBOE is Not Giving Up on Solana ETFs: But Will the SEC Approve?

Meanwhile, many analysts think several cryptocurrencies will gain ETF approval in 2025, including Litecoin, Dogecoin, Solana, and XRP. 

They believe the more crypto-friendly stance of the SEC’s current leadership will be significant in how the Commission will treat ETF filings this year. As for probability of approval, analysts estimate the odds of a Litecoin ETF approval this year at a high 90%, Dogecoin at 75%, and XRP and Solana below 75%.