The potential approval of a U.S.-based XRP spot ETF just became significantly more likely. The Securities and Exchange Commission (SEC) has begun a formal review of WisdomTree’s application for the first XRP spot exchange-traded fund. If successful, it could mark a historic shift in how traditional investors gain access to XRP.
SEC Evaluates WisdomTree’s XRP Spot ETF Proposal
WisdomTree, in partnership with the Cboe BZX Exchange, submitted the proposal that would enable institutional and retail investors to gain exposure to XRP without the complexities of direct crypto ownership. The ETF would track XRP’s price via the CME CF Ripple-Dollar Reference Rate, offering a familiar and regulated investment vehicle.
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The SEC has now up to 240 days to approve or reject the application. During this period, it is seeking public comments to determine whether the product provides sufficient safeguards against market manipulation and ensures investor protection.
This review comes at a crucial moment, as the market anticipates broader regulatory clarity for crypto assets in the U.S. A green light from the SEC would align XRP with other major cryptocurrencies like Bitcoin and Ethereum, which already have approved spot ETFs. Analysts believe such approval could drive fresh institutional interest in XRP and validate its position in the evolving digital asset ecosystem.
While the outcome remains uncertain, the SEC’s willingness to formally assess the ETF signals growing acceptance of crypto-based financial products. For XRP, this could be the most significant regulatory development since the landmark 2023 court ruling on its legal status.
