XRP News Today: SEC Begins Review of First Spot XRP ETF in US

The U.S. Securities and Exchange Commission (SEC) has formally begun the review process for the WisdomTree XRP Trust, a proposed spot exchange-traded fund (ETF) designed to provide investors with exposure to XRP without the need to directly own the digital asset. The application was filed by the Cboe BZX Exchange, and if approved, it would mark a notable achievement as the first spot XRP ETF in the U.S. The ETF’s goal is to track the performance of XRP, which is measured by the CME CF Ripple-Dollar Reference Rate. The Trust’s assets will consist solely of XRP, cash, and cash equivalents, and it will value its shares daily at 4:00 PM ET using the same methodology as the Pricing Benchmark. Shares will be sold or redeemed in blocks of 5,000 through cash transactions with authorized participants.

The review process is just the first step and does not guarantee approval. The SEC has up to 240 days to approve or reject the application. During this period, the SEC is soliciting public comments on whether the ETF’s design adequately addresses concerns related to market manipulation and investor protection. This phase is crucial as it allows stakeholders to voice their concerns and opinions, which the SEC will consider in its decision-making process. The outcome of this review could significantly impact XRP’s institutional adoption and market dynamics. If approved, it would provide a regulated avenue for investors to gain exposure to XRP and may even set a precedent for the future of cryptocurrency-based investment products in the United States.

XRP has seen several developments in recent months, including an announcement that the cryptocurrency will be part of the U.S. strategic crypto reserve. Additionally, the SEC dropped its appeal in the long-standing lawsuit against Ripple Labs, which was seen as a big victory for the crypto industry. The resolution of the legal dispute between Ripple and the SEC, with Ripple agreeing to pay a $50 million penalty, could influence the SEC's approach to regulating cryptocurrencies and may impact the review of the WisdomTree XRP Trust. The legal landscape for cryptocurrencies in the U.S. remains uncertain, and this review could provide valuable insights into the regulatory framework for digital assets.