The US Securities and Exchange Commission (SEC) has formally initiated a review of the WisdomTree XRP Trust, a proposed spot exchange traded fund (ETF) that would give investors exposure to the XRP XRP.

Specified by CBOE BZX Exchange marks the application the first formal SEC review of a US-based place XRP ETF. If approved, it would be the first place XRP ETF in the US – a milestone that could open the door to similar products across other crypto assets.

The product tracks XRP’s market price via CME CF Ripple dollar reference, allowing investors to get XRP exposure through traditional broker accounts and bypass the need for private keys or self-insurance.

SEC published its notice under Release No. 34-103124 and initiated a more thorough evaluation of the application. The Commission now has up to 240 days to approve or reject the filing.

Meanwhile, the Agency is asking for public comments on whether ETF’s design adequately addresses concerns related to market manipulation and investor protection.

Meanwhile, Ripple’s Chief Legal Officer, Stuart Alderoty, repeated in a letter submitted to SEC’s Crypto Taskforce this week that XRP should not be treated as a security in itself.

“The rules must be clear not only for issuers, but for all market participants who could inadvertently be classified as securities exchanges, brokers, dealers or issuers,” wrote ageoty, adding that excessive overall vague expressions such as “fully functional” or “decentralized” create more regulatory confusion than clarity.