WisdomTree's XRP ETF Filing Acknowledged by SEC, Launches CoinDesk 20 ETP
The US Securities and Exchange Commission (SEC) has officially acknowledged WisdomTree’s application to list and trade shares of an XRP exchange-traded fund (ETF).
In a filing, the SEC's acknowledgement triggers a three-week comment period that allows investors, industry experts, and the general public to provide input on how the agency should WisdomTree’s application.
These comments, which will only begin once the filing is published in the Federal Register, will be considered by the agency ahead of its decision to approve, reject or delay the application.
WisdomTree's SEC acknowledgement comes just days after the SEC officially accepted NYSE Arca's application to list and trade shares of the Grayscale XRP Trust and Grayscale Dogecoin Trust.
Likewise, the acknowledgement of the applications signals the start of the regulator's review process, which although does not guarantee approval, signals a contrast to its previous reluctant stance that led to withdrawals of such applications.
These XRP applications come amid the ongoing legal battle between Ripple and the SEC over XRP being classified as a security. Last month, the SEC submitted a filing that challenges a July 2023 court ruling that partially dismissed claims against the company.
The agency also disputes the lower court’s exclusion of non-cash XRP distributions, such as those used for employee compensation and business incentives, from securities regulations. These transactions meet the "investment of money" requirement under the Howey framework, according to the regulator.
This week also saw Cboe BZX submitting a request to list the 21Shares XRP ETF as a “Commodity-Based Trust.” 21Shares filed an application with the SEC for its 21Shares Core XRP Trust back in November. The fund would allow investors to buy shares in the ETF that tracks XRP's price without holding the digital currency itself.
Meanwhile, WisdomTree also announced the launch of its exchange-traded product (ETP) which offers European investors direct access to the CoinDesk 20 Index, a benchmark representing the largest crypto assets.
Announced at Consensus Hong Kong, WisdomTree's Physical CoinDesk 20 ETP (WCRP) is listed on Deutsche Börse Xetra, the Swiss Stock Exchange SIX, and Euronext exchanges in Paris and Amsterdam.
“The launch of the first CoinDesk 20 ETP with WisdomTree is a defining moment for digital asset investing in Europe," Alan Campbell, President of CoinDesk Indices, said in a release. "The CoinDesk 20 provides institutional investors with a streamlined way to access the largest digital assets beyond Bitcoin."
Similar to traditional finance indices such as the S&P 500 or NASDAQ, WCRP provides diversified exposure to top digital assets. WCRP also integrates staking mechanisms, allowing investors to earn rewards by participating in the security and validation of blockchain networks.
The CoinDesk 20 Index was launched in January 2024 and has established itself as a key benchmark for digital asset investors. In its first year, the index recorded over $14 billion in trading volume.