XRP ETF Approval Gains Momentum—Wall Street Finally Wakes Up to Crypto

The long-awaited XRP exchange-traded fund (ETF) just cleared another regulatory hurdle—because nothing says ’legitimacy’ like traditional finance scrambling to catch up.

Regulators inch closer to greenlighting the first XRP-focused ETF, a move that could flood the asset with institutional cash (and irony).

Funny how banks once called crypto a scam—until they realized they could charge 2% fees to hold it for you.

Public Comments Key to SEC Review

WisdomTree submitted its XRP ETF proposal through the Cboe BZX Exchange. The SEC published a notice inviting public feedback, which is an important part of the review process. During this period, the SEC is examining how well the ETF protects investors and prevents market manipulation.

The SEC has up to 240 days to complete its review. The fact that the review has reached this advanced phase suggests the commission is seriously considering approval.

Compliance with Securities Laws

The SEC is reviewing the ETF’s compliance with the Securities Exchange Act of 1934. This includes checking whether the fund manages risks properly and safeguards investor interests.

Although no final decision has been made, moving to this phase indicates the ETF proposal is viewed more favorably by regulators.

Ripple Lawsuit Settlement Helps Approval Chances

A recent settlement between Ripple Labs and the SEC has cleared up regulatory uncertainties around XRP. Ripple’s legal win has increased institutional interest in XRP and improved the chances of the ETF being approved.

The start of XRP futures ETFs on the CME also supports the move toward a spot ETF. Futures ETFs for Bitcoin and ethereum are already accepted, making this a natural next step for XRP.

Benefits for Investors

If approved, the XRP spot ETF would allow US investors to buy XRP through a traditional exchange without needing to use crypto platforms. This could attract more investors, including institutions and those seeking regulated investment options.

The ETF WOULD also improve XRP liquidity and help with price discovery, supporting a healthier market.

What’s Next?

After the public comment period, the SEC will review all feedback and make a final decision. The decision is expected within the 240-day review timeline, possibly later this year or early next year.

Summary

The SEC’s progress on WisdomTree’s XRP spot ETF marks an important development for XRP and crypto investors. The Ripple lawsuit settlement and growing demand make the ETF’s approval more likely. If it happens, it will be the first XRP spot ETF in the US, opening new investment opportunities and boosting XRP’s mainstream acceptance.