The US stock and values commission. UU. (SEC) has formally initiated a review of the Wisdomtree XRP trust, a proposed Coterrician Fund (ETF) (ETF) proposed that would provide investors exposure to XRP XRP.
Filed by the CBOE BZX Exchange, the application marks the first formal review of the SEC of an XRP ETF spot based on the US. If approved, it would be the first ETF XRP spot in the USA. UU., A milestone that could open the door to similar products in other cryptographic assets.
The product would track the XRP market price through the Dollar Ripple-Dollar reference rate of CME CF, which allows investors to obtain XRP exposure through traditional brokerage accounts, avoiding the need for private keys or AutoCustody.
The SEC published its notice under version No. 34-103124, starting a more thorough evaluation of the application. The commission now has up to 240 days to approve or reject the presentation.
Meanwhile, the agency requests public comments on whether the ETF design adequately addresses concerns related to market handling and investor protection.
Meanwhile, in a letter presented to the Criptographic Working Group of the SEC this week, the legal director of Ripple, Stuart Alderoty, reiterated that XRP should not be treated as a security in itself.
“The rules must be clear not only for issuers, but for all market participants who could involve themselves as exchanges of values, runners, distributors or emitters,” Alderoty wrote, and added that the excess of sale of vague terms as “completely functional” or “decentralized” creates more regulatory confusion than clarity.
