The US Securities and Exchange Commission (SEC) has officially launched a review of the WisdomTree XRP Trust, a Spot Exchange-Traded Fund (ETF), which provides investors with exposure to XRP XRP.
Submitted by CBOE BZX Exchange, the application marks the first formal SEC review of the US-based Spot XRP ETF. If approved, it will be the first spot XRP ETF in the US. This is a milestone that allows for the door to similar products across other crypto assets.
This product tracks the market price of XRP via CME CF Ripple-Dollar reference rates, allowing investors to acquire XRP exposures through traditional securities accounts, avoiding the need for private keys and independence.
The SEC has published notifications based on release No. 34-103124 and has begun a more thorough evaluation of the application. The committee currently has a maximum of 240 days to approve or reject submissions.
In the meantime, agents are seeking public comment on whether ETF designs will adequately address concerns related to market manipulation and investor protection.
Meanwhile, in a letter filed this week to the SEC’s Crypto Taskforce, Ripple’s Chief Legal Officer Stuart Aldeoty repeatedly stated that XRP should not be treated as its own security.
“The rules must be clear not only to issuers, but to all market participants who can unconsciously classify as stock exchanges, brokers, dealers, or issuers,” writes Aldety, adding that excessive reliance on vague terms such as “fully functional” and “branching” leads to more confusion in regulations than clarity.
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