XRP News Today: SEC Begins Review of WisdomTree XRP Trust ETF

The U.S. Securities and Exchange Commission (SEC) has formally initiated a review of the WisdomTree XRP Trust, a proposed spot exchange-traded fund (ETF). This move marks a significant step in the regulatory process for the ETF, which aims to provide investors with exposure to the XRP cryptocurrency. The SEC's review will focus on evaluating investor protection measures and assessing the risks of market manipulation associated with the ETF.

The SEC has officially moved forward in reviewing Cboe BZX Exchange’s proposal to list the WisdomTree XRP Fund. This fund aims to track XRP’s spot price using the CME CF Ripple-Dollar Reference Rate. The SEC has entered a new evaluation phase to decide if the fund meets legal standards under the Securities Exchange Act of 1934. No approval or rejection has been made yet, as the application continues through the review process.

The SEC has the authority to extend the review period for up to 240 days, with a final decision expected to be announced no later than the end of October 2025. This extended review period allows the regulatory body to conduct a thorough examination of the proposal, ensuring that all necessary safeguards are in place to protect investors. The delay in the decision until October 2025 indicates that the SEC is taking a cautious approach, prioritizing a comprehensive evaluation over a hasty approval.

The lawsuit's resolution and the subsequent $50 million settlement have alleviated concerns among XRP token holders, contributing to a resurgence in the token's value. This positive development has fueled optimism among investors, who are now more confident in the prospects of the XRP ETF. The return to the January 2025 peak of $3.40 for the XRP token reflects the growing interest and trust in the cryptocurrency, further bolstering the case for the ETF's approval.