2025-03025NoticeWallet

SEC Considers Listing XRP Crypto Fund on Major Exchange

Published Date: 2/26/2025

Notice

Summary

Cboe BZX Exchange wants to start listing and trading shares of the new WisdomTree XRP Fund, which is tied to the cryptocurrency XRP. This change lets investors buy and sell these shares on the exchange, opening up fresh opportunities in crypto investing. The proposal was filed in early February 2025 and is now open for public comments before it goes live.

Analyzed Economic Effects

6 provisions identified: 4 benefits, 1 costs, 1 mixed.

XRP ETP Will Be Listed On Cboe BZX

Cboe BZX filed on February 6, 2025 to list and trade the WisdomTree XRP Fund, an exchange-traded product tied to spot XRP. The shares will be tradable on the Exchange only after the Trust's Form S-1 registration statement is effective, and the proposal is open for public comment.

Custody Promises: Segregated Cold Storage

A third‑party Custodian will hold the Trust's XRP in segregated cold storage addresses that are verifiable on the XRP blockchain; the Custodian will safeguard private keys and will not loan, hypothecate, pledge, or otherwise encumber the Trust's XRP without the Trust's instruction. The Trust's XRP will be identifiable in the Custodian's books and records as property of the Trust.

Cash‑Only Creation/Redemption in 5,000‑Share Lots

Creations and redemptions will occur only in cash in Creation Baskets of 5,000 Shares, and authorized participants will not directly receive or deliver XRP as part of creation/redemption. Creation orders must be placed by 4:00 p.m. ET (or exchange close, if earlier) on a business day.

Exchange Says ETP Could Lower Premiums, Fees

The Exchange states that approving this proposal could give U.S. investors access to XRP in a regulated ETP that may reduce premium/discount volatility, reduce management fees through competition, and provide an alternative to direct custody of spot XRP.

Daily NAV and 15‑Second Intraday Value

The Trust will calculate net asset value (NAV) once per day using the CME CF Ripple‑Dollar Reference Rate—New York Variant at 4:00 p.m. ET, and the Intraday Indicative Value (IIV) will be updated every 15 seconds during Regular Trading Hours (9:30 a.m. to 4:00 p.m. ET). Pricing data for XRP and the Pricing Benchmark will be available at least every 15 seconds.

Trading Can Be Halted If Pricing Data Fails

The Exchange may halt trading in the Shares under BZX rules for market conditions or if the IIV or the Pricing Benchmark value is not being disseminated as required; if an interruption persists past the trading day it occurred, the Exchange will halt trading no later than the beginning of the following trading day. Trading will also be halted if the NAV is not available to all market participants at the same time.

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Key Dates

Published Date
2/26/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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