Latest update on the proposed XRP Exchange Traded Fund (ETF): Its approval status
The Securities and Exchange Commission (SEC) is currently evaluating the application for a U.S.-based spot exchange-traded fund (ETF) that focuses on Ripple (XRP). The regulator has initiated a review of the WisdomTree XRP Trust, an application filed by Cboe BZX Exchange, which seeks to establish a market- traded product linked to XRP's price.
The review, outlined in Release No. 34-103124, opens a 240-day window for the SEC to either approve or reject the proposal. During this period, public comments are welcomed, allowing for a comprehensive evaluation of the product's adherence to standards pertaining to market integrity and investor protection.
The proposed ETF would track XRP's value through the CME CF Ripple-Dollar Reference Rate, effectively enabling investors to gain exposure through standard brokerage accounts. This eliminates the need for private keys or self-custody solutions.
The progress of the WisdomTree XRP Trust application could signify a growing tendency for altcoins to expand beyond Bitcoin (BTC) and Ethereum (ETH). Numerous other firms are also pursuing spot XRP ETFs, although most are still in the early stages, with few reaching the point of required filings or submitting the necessary 19b-4 forms.
Franklin Templeton is one of the firms actively seeking approval for a spot XRP ETF. The SEC has extended its decision deadline for Franklin Templeton's application until June 17, 2025. Signs of investor optimism are apparent, as betting markets indicate an 83% probability that the U.S. will greenlight an XRP ETF before the end of the year.
In a separate development, the Brazilian stock exchange launched the XRPH11, listed as the XRP HASH CI ETF. However, due to the limited size of the local financial market, the Brazilian fund has had minimal impact on XRP's price.
At the time of writing, XRP was trading at $2.31, down 0.5% on the day and nearly 2% higher over the previous week. To reclaim the $2.50 resistance level and potential push towards new highs, the token will need to consolidate its position.
In the broader market context, the SEC's review of the WisdomTree XRP Trust is gaining attention, as it potentially signals a significant step forward for XRP and other altcoins in the U.S. regulatory landscape. However, the ongoing legal disputes between Ripple and the SEC regarding XRP's classification as a security continue to cast uncertainty over the timing and outcomes of these regulatory decisions.
- Investors may find it intriguing that, alongside the WisdomTree XRP Trust, Franklin Templeton is also aiming to launch a spot XRP ETF, with the SEC extending its decision deadline until June 17, 2025.
- The proposed XRP ETFs, in addition to those based on Bitcoin and Ethereum, could mark a shifting trend in the cryptocurrency market, with various firms pursuing similar products.
- The review of the WisdomTree XRP Trust by the SEC could potentially pave the way for a greater integration of altcoins, including XRP, into traditional finance and investing, thanks to advancements in technology.
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