XRP News Today: SEC Initiates Review of First U.S. Spot XRP 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) that would provide investors with exposure to XRP. Filed by the Cboe BZX Exchange, the application marks the first formal SEC review of a U.S.-based spot XRP ETF. If approved, it would be the first spot XRP ETF in the U.S. — a milestone that could open the door for similar products across other crypto assets.

The product would track XRP’s market price via the CME CF Ripple-Dollar Reference Rate, allowing investors to gain XRP exposure through traditional brokerage accounts, bypassing the need for private keys or self-custody. The SEC published its notice under Release No. 34-103124, initiating a more thorough evaluation of the application. The Commission now has up to 240 days to approve or reject the filing.

In the meantime, the agency is soliciting public comments on whether the ETF’s design adequately addresses concerns related to market manipulation and investor protection. Meanwhile, in a letter submitted to the SEC’s crypto taskforce, Ripple’s Chief Legal Officer, Stuart Alderoty, reiterated that XRP should not be treated as a security in and of itself. "Rules must be clear not just for issuers, but for all market participants who could be unwittingly classified as securities exchanges, brokers, dealers, or issuers," Alderoty wrote, adding that overreliance on vague terms like “fully functional” or “decentralized” creates more regulatory confusion than clarity.

The prospects for an XRP Spot ETF in the U.S. have significantly improved, with the likelihood of approval surging. This increase reflects a growing optimism among market participants and analysts. The anticipation surrounding the approval of an XRP Spot ETF has been building, with June 17th marked as a critical date. This is when the SEC is expected to make a decision on the matter. The potential approval of a spot ETF for XRP could serve as a major catalyst for the cryptocurrency, driving significant interest and investment.

Analysts have also weighed in on the potential impact of an XRP Spot ETF. According to estimates, the odds of approval for a spot ETF for XRP this year are as high as 85%. This high probability underscores the growing confidence in the regulatory environment and the potential for XRP to gain broader acceptance in the financial markets. The excitement around a potential XRP spot ETF is not limited to market predictions. Strong institutional interest in CME's new XRP futures contracts has further fueled hopes for a U.S.-listed spot ETF. This interest highlights the increasing traction that XRP is gaining in regulated financial markets, positioning it as a viable asset for institutional investors.

The potential approval of an XRP Spot ETF could have far-reaching implications for the cryptocurrency market. It would provide investors with a regulated and accessible way to gain exposure to XRP, potentially driving up demand and prices. Additionally, the approval of such an ETF could set a precedent for other cryptocurrencies, paving the way for more regulated financial products in the future. In summary, the likelihood of an XRP Spot ETF in the U.S. moving closer to reality is supported by a surge in approval odds, strong institutional interest, and positive analyst estimates. The potential approval of such an ETF could serve as a significant catalyst for XRP, driving investment and acceptance in the broader financial markets.