WisdomTree has taken an important step towards creating an exchange-traded fund (ETF) based on XRP by filing an application with the U.S. Securities and Exchange Commission (SEC). This ETF, if approved, will become a significant milestone for the third-largest crypto asset by market capitalization and could open new opportunities for investors.
Key details of the WisdomTree application
#ETF based on $XRP will track the value of the token.
Bank of New York Mellon has been appointed as the administrator for the proposed trust.
The company has created a trust organization in Delaware specifically for the project.
The name of the exchange and the fund's ticker have not yet been disclosed.
Context: #Ripple Labs and #SEC
The WisdomTree application has been submitted amid ongoing legal disputes between Ripple Labs, the creator of XRP, and the SEC. These disputes concern the status of XRP as a security and continue to impact the prospects for products related to this asset.
Experts note that the SEC's position may change following the anticipated resignation of its chairman Gary Gensler. The new head of the regulator may soften the approach to crypto assets, creating more favorable conditions for the approval of products like the XRP ETF.
Prospects for the XRP ETF
In addition to WisdomTree, Bitwise and Canary Capital have joined in the development of investment products based on XRP. SEC approval of such funds could significantly enhance the availability of XRP for institutional and retail investors, strengthening its market position.
The launch of the XRP ETF will not only be an important step for the industry but also a key indicator of changing regulatory approaches to cryptocurrencies in the U.S.
Follow @Sasha why NOT
