SEC Begins Review of WisdomTree XRP Trust Spot ETF Application
The U.S. Securities and Exchange Commission (SEC) has begun reviewing the WisdomTree XRP Trust, a proposed spot exchange-traded fund (ETF) for XRP.
- This marks the first formal SEC review of a U.S.-based spot XRP ETF.
- If approved, it would be the first of its kind in the U.S., potentially paving the way for similar products for other cryptocurrencies.
- The ETF would track XRP's market price using the CME CF Ripple-Dollar Reference Rate.
- Investors could access XRP through traditional brokerage accounts without needing private keys or self-custody.
- The SEC has 240 days to decide on the application following its notice under Release No. 34-103124.
- The agency is currently seeking public comments on the ETF's design regarding market manipulation and investor protection.
Ripple's Chief Legal Officer, Stuart Alderoty, stated that XRP should not be classified as a security and emphasized the need for clear regulations for all market participants.