US SEC Begins Initial Examination of WisdomTree's XRP Spot ETF

The U.S. Securities and Exchange Commission (SEC) has initiated its first formal review of a proposal to launch an XRP exchange-traded fund (ETF) in the United States, marking a significant advancement for trading spot XRP ETFs. The application under review is from WisdomTree, an asset management firm that previously issued one of the eleven spot Bitcoin ETFs in the U.S.

The SEC will evaluate if the proposed rule changes to list the WisdomTree’s XRP ETF on the Cboe BZX Exchange are sufficient to prevent fraudulent and manipulative practices, and ensure investor protection. Approval for the WisdomTree ETF could pave the way for additional XRP-related product launches, a significant win for the XRP community given Ripple, the token's issuer, has been engaged in a lengthy legal dispute with the SEC.