XRP ETF near materializing in the US after this SEC movement
By Hannah Pérez
A first XRP ETF proposal went to the review phase. The SEC endorses Wisdomtree’s request, which indicates a renewed regulator commitment around this kind of investment products.
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- The sec endorses Wisdomtree’s application for an XRP ETF in cash.
- It is the first proposal of ETF XRP in moving on to the review phase.
- The commission now has 240 days to provide a verdict.
The arrival of a first quoted Bag (ETF) fund in XRP in the US market is one step closer to becoming a reality now than local regulators have made a key decision in this regard.
The US Stock Exchange and Securities Commission (SEC). WISDOMTREE to launch an ETF with direct exposure to XRP in the United States stock exchanges.
In a presentation dated May 27, the regulatory agency announced the beginning of the review process for “Wisdomtree XRP Trust”, which means that the SEC has begun a more exhaustive evaluation of the application.
The movement occurs after the proposal entered in February in a phase of public comments, opening the door so that the interested parties and the cryptocurrency community express their opinions. The last review process indicates that the SEC has promised to seriously consider the application, potentially influenced by the evolving regulatory panorama.
The agency continues to receive public comments on whether the ETF design adequately addresses concerns related to market handling and investor protection, as highlighted COINDESK.
The application marks the first formal review of the SEC of an ETF XRP in cash and follows a series of delays for verdicts of other similar applications. The commission now has up to 240 days to approve or reject that presentation, according to the report.
ETF XRP WISDOMTREE Go to the review phase
The beginning of the review process marks a milestone on the long trip to the Cryptocurrency ETFs in cash in the United States; specifically XRP -based funds, a token closely linked to Ripple.
An XRP ETF in cash would allow investors to obtain exposure to the fourth largest digital asset without buying it directly, which would facilitate the investment of institutions and individuals. If approved, the XRP ETF of WISDOMTREE It could become an important entrance door for the new capital to flow to the XRP ecosystem.
WISDOMTREEwhich operates a series of cryptocurrency investment products, introduced in December its request for the ETF to the cash of XRP, joining the race for a fund of this type, which then already included administrators such as Bitwise and Canary Capital.
The SEC then received a record of CBOE BZX Exchange Inc on behalf of WISDOMTREE For that proposal.
The product would monitor the XRP market price through the CME CF Ripple-Dollar reference rate, which would allow investors to obtain exposure to XRP through traditional brokerage accounts.
In the middle of the review, the legal director of RippleStuart Alderoty, sent this week a letter to the cryptocurrency work group of the SEC, reiterating that XRP should not be treated as a value in itself.
“Today, riPle He sent an additional letter to the Crypto Task Force of the SEC addressing a key question of the “new paradigm” discourse of the commissioner [Hester] Peirce: When is a digital asset separate from an investment contract? We appreciate the continuous commitment to the working group ”Alderoty wrote on X on Tuesday.
The SEC previously approved an XRP leverage ETF despite not having approved the funds in cash. XRP is negotiated at USD $ 2.31 at the time of writing these lines, with a market capitalization of USD $ 135.7 billion.
Hannah Estefanía Pérez / Diariobitcoin
Image of Depositphotos
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