- SEC evaluates public feedback on WisdomTree XRP spot ETF proposal.
- Ripple lawsuit resolution boosts XRP spot ETF approval prospects.
- SEC’s advanced review phase signals potential approval of XRP spot ETF.
The US Securities and Exchange Commission (SEC) has moved a step closer to approval of WisdomTree’s proposed XRP spot exchange-traded fund (ETF). The SEC has invited public comments which means the application is under review. The approval could lead to the launch of the first XRP spot ETF available in the US, giving cryptocurrency fans and institutional investors a new way to invest.
SEC Advances Review of XRP Spot ETF
The SEC has issued a notice (Release No. 34-103124) inviting public feedback on the WisdomTree XRP ETF proposal. The commission continues to assess the fund’s design, how it protects investors and possible market manipulation risks. The SEC uses this public comment period to gather more information about the structure of the ETF.
WisdomTree submitted the XRP ETF proposal through Cboe BZX Exchange. The SEC has 240 days to review the application, and it has now entered an advanced phase of review. The commission continues to review the proposal to see if it complies with the legal and regulatory rules of the Securities Exchange Act of 1934.
The SEC will review the XRP ETF to determine if it follows major rules put in place to protect the market and investors. It will evaluate how the product affects the market, risks management and safety measures. Although the commission hasn’t made its final decision, reaching this advanced review phase indicates more confidence about the proposal.
Ripple Vs SEC Settlement Raises ETF Approval Odds
The SEC has also considered comments and concerns raised after the Ripple lawsuit’s resolution earlier this year. The outcome of the case cleared up the regulatory situation for XRP which was beneficial for the ETF. Ripple won the lawsuit which has drawn more institutional interest in XRP and related investments.
The launch of the first XRP futures ETF on the CME, joins BTC and ETH in the cryptocurrency futures market. Experts believe the XRP futures is a first step toward a spot-based ETF which showed increased acceptance of digital assets in traditional financial markets.
The review will also include an analysis of the fund’s compliance with federal securities laws. The SEC will make its final decision after reviewing all the comments and feedback about the fund.
Although the ETF has not been approved, the SEC’s move to advance review phase increases the chances of approval. If approved, this would be the first XRP spot ETF in the United States, to give investors a new avenue to invest in the asset.