Securities and Exchange Commission endorses initial filing for XRP-based exchange-traded fund
The Securities and Exchange Commission (SEC) has officially initiated the review process for WisdomTree's proposal to launch an XRP exchange-traded fund (ETF), potentially marking a significant stride towards the introduction of the first U.S.-based spot XRP ETF.
This development follows the submission of the proposal by WisdomTree to the Cboe BZX Exchange, and subsequent publication in the Federal Register in February. The SEC's announcement, made on May 27–28, 2025, signifies the formal start of the review period.
During this process, the SEC will assess whether the proposal satisfies legal and regulatory standards, specifically focusing on fraud and market manipulation prevention, as stipulated by Section 6(b)(5) of the Exchange Act. The agency has also opened a public comment period, inviting interested parties to share their insights until the end of the review period.
If approved, the ETF would list on the Cboe BZX Exchange under Commodity-Based Trust Shares rules, tracking XRP's price via the CME CF Ripple-Dollar Reference Rate. The SEC has up to 240 days to make a decision, but this period may be extended if further analysis or public input is necessary.
The potential approval of a spot XRP ETF could expand market access, potentially attracting more institutional and retail investors to the crypto space. Moreover, it could set a regulatory precedent for future crypto-related ETFs and investment products. It is worth noting that the outcome of this review could address investor protection concerns associated with market manipulation and fraud.
WisdomTree's application is part of a broader push by asset managers to offer more crypto investment options in the U.S., following recent SEC approvals for Bitcoin and Ethereum spot ETFs. As of May 28, 2025, XRP's price has shown limited significant movement, reflecting ongoing regulatory uncertainty in the U.S. crypto market.
In summary, the SEC's review of the WisdomTree XRP ETF proposal is a critical event for the crypto ETF landscape, with potential implications for market structure, investor access, and regulatory clarity.
Investors may find an increased interest in cryptocurrency investments with the potential approval of WisdomTree's XRP exchange-traded fund (ETF), as technology like blockchain integrated into finance could attract both institutional and retail investors. If approved, this ETF, tracking XRP's price via the CME CF Ripple-Dollar Reference Rate, could set a regulatory precedent for other crypto-related ETFs and investment products, potentially leading to more transparent and secure investment options in the future.
