SEC begins to review the first XRP ETF proposed by WisdomTree in America.

The SEC has officially initiated the review process for the XRP spot ETF named WisdomTree XRP Trust, the first product in America that allows investors to access XRP without having to directly own the token.

The application submitted by the Cboe BZX exchange marks the first time the SEC is evaluating a spot XRP ETF based in America. If approved, this will be an important milestone, paving the way for many similar products based on other cryptocurrency assets.

This fund will track the market price of XRP through the CME CF Ripple-Dollar Reference Rate, allowing investors to access XRP through traditional brokerage accounts, eliminating the need to hold private keys or self-custody.

The SEC has announced a notice under Release No. 34-103124, starting an in-depth review process with a maximum period of 240 days to make a decision on whether to approve or deny the application. During this time, the regulatory agency is also seeking public input on investor protection and market manipulation risks.

In a related development, Stuart Alderoty, the General Counsel of Ripple, sent a letter to the SEC's crypto task force, emphasizing that XRP should not be considered a security. He warned that the misuse of vague terms such as "decentralized" or "fully operational" is making the legal framework confusing, increasing risks for market participants.