US SEC’s XRP ETF Review: Will It Fly or Flop? 🤔

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Well, well, well! It seems that the U.S. Securities and Exchange Commission (SEC) has decided to dust off its magnifying glass and take a good, hard look at the possibility of trading spot XRP exchange-traded funds (ETFs). Yes, you heard that right! The SEC has kicked off its first formal review of an application that dares to suggest launching an XRP ETF in the land of the free and the home of the brave (and the occasionally bewildered). 🎩

According to a rather official-sounding filing from the securities agency, they’ve initiated proceedings to determine whether they will approve or deny the application to list and trade shares of the WisdomTree XRP ETF on the Cboe BZX Exchange. WisdomTree, in case you were wondering, is an asset management firm that has already dipped its toes into the ETF waters with one of the eleven spot Bitcoin ETFs in the U.S. So, they’re not exactly new to this game. 🏦

SEC to Review WisdomTree Spot XRP ETF

Now, the SEC is on a mission to evaluate whether the proposed rule change to list WisdomTree’s XRP ETF on Cboe BZX is designed to prevent any funny business—fraudulent and manipulative practices, to be precise. Because, you know, protecting investors and serving the public interest is all the rage these days. Who knew? 😏

But wait, there’s more! The SEC has also noted that this proposal might raise new concerns that they haven’t even thought of yet. Shocking, I know! While they ponder this existential crisis, the Commission has kindly asked interested parties to submit their thoughts on whether this application should be given a thumbs up or a thumbs down. Because nothing says “we care” like a public comment period! 📢

“The Commission asks that commenters address the sufficiency of the Exchange’s statements in support of the proposal, which are set forth in the Notice, in addition to any other comments they may wish to submit about the proposed rule change,” the SEC stated, probably while sipping a cup of very serious tea.

Now, let’s not get ahead of ourselves. Just because the SEC has started proceedings doesn’t mean they’ll roll out the red carpet for this product. They have a whopping 240 days to decide if this proposal is worth their precious time. Tick-tock! ⏳

Not the First

Oh, and here’s a fun fact: if the WisdomTree ETF gets the green light, it won’t be the first XRP fund to strut its stuff in the U.S. Just last month, the Vermont-based asset manager Teucrium launched the first leveraged XRP ETF on NYSE Arca. And if that wasn’t enough excitement for you, ProShares also listed three futures ETFs that provide investors with leveraged and inverse exposure to XRP through derivatives. Because who doesn’t love a good rollercoaster ride? 🎢

If the SEC gives a thumbs up to a spot XRP ETF, it could open the floodgates for similar products. This would be a monumental win for the XRP community, especially considering that the token’s issuing company, Ripple, has been embroiled in a legal battle with the SEC for what feels like an eternity. So, stay tuned, folks! The drama continues! 🍿

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2025-05-28 14:02