Asset management firm WisdomTree has taken a significant step toward launching a spot XRP ETF as its proposal officially enters the public comment phase.
Public Comment Period Begins
The Federal Register has formally published WisdomTree’s XRP ETF proposal, initiating a 21-day public commentary window. During this period, investors, financial institutions, and industry experts can submit feedback regarding the potential impact and viability of the ETF.
Public commentary is a crucial phase in the SEC’s review process, providing regulators with industry insights before making a decision. This development suggests that WisdomTree’s proposal has met the initial criteria required for further regulatory scrutiny.
SEC’s Review Process and Timeline
Once the public comment period concludes, the SEC will conduct a comprehensive assessment of WisdomTree’s ETF application. The regulatory body will evaluate factors such as compliance with securities laws, market integrity and investor protection measures, and potential risks associated with XRP’s volatility and legal status.
The SEC has the authority to extend its review process by an additional 90 days before reaching a final decision. Given the agency’s historical reluctance toward cryptocurrency-based ETFs, market participants are closely watching how regulators will handle this application.
Prospect and Significance of an XRP ETF
WisdomTree is not the only entity pursuing an XRP-based ETF. Several asset managers are attempting to capitalize on the growing demand for regulated cryptocurrency investment vehicles, particularly after the recent approval of spot Bitcoin ETFs.
If approved, a spot XRP ETF could have profound implications for the crypto market with potential benefits including increased institutional adoption, enhanced liquidity, and regulatory clarity. However, given the SEC’s cautious stance on crypto ETFs, there is no guarantee of approval.
WisdomTree’s XRP ETF proposal is part of a broader trend of integrating crypto into mainstream finance. The outcome of this application could play a key role in shaping the future of XRP as an institutional-grade asset.
