The SEC formally acknowledged the Cboe BZX Exchange's proposal to list and trade shares of the WisdomTree XRP Fund on May 27, 2025. This marks a new phase of evaluation to determine if the proposed spot XRP ETF meets the criteria outlined in Section 6 of the Securities Exchange Act of 1934.
The WisdomTree XRP Fund aims to provide investment exposure to XRP by tracking its spot price using the CME CF Ripple-Dollar Reference Rate. The fund's assets would consist of XRP, cash, and cash equivalents, potentially allowing investors exposure to XRP through brokerage accounts.
The SEC has not yet approved or rejected the application but has extended the deadline for evaluation under Section 19(b)(2)(B) of the Securities Exchange Act. The Commission is seeking public comments to assess if the fund's design adequately prevents fraudulent activities and protects investors.
Approval of the WisdomTree XRP Fund would be a significant milestone for XRP, potentially making it one of the first spot ETFs connected to the digital asset.
This article is based on our author's analysis of materials taken from the following resource: TheStreet.