In a bold move that could further bridge the gap between traditional finance and the world of digital assets, the U.S. Securities and Exchange Commission (SEC) has initiated a formal review of a high-stakes proposal: the listing and trading of the WisdomTree XRP Fund on the Cboe BZX Exchange. If approved, this would mark a historic moment—not just for XRP, but for the broader crypto ETF landscape.
What is the WisdomTree XRP Fund?
The WisdomTree XRP Fund is designed to directly track the spot price of XRP, one of the world’s most popular and controversial cryptocurrencies. Unlike futures-based ETFs, which track contracts rather than real-time prices, this proposed fund aims to offer pure exposure to XRP, giving investors a regulated and accessible way to invest in the digital asset without having to manage wallets or private keys.
The fund would be valued daily using the CME CF Ripple-Dollar Reference Rate, an institutional-grade benchmark that reflects the fair market price of XRP in U.S. dollars. According to the proposal, the holdings of the fund will consist strictly of:
XRP tokens
Cash
Cash equivalents (such as short-term government securities)
This streamlined structure emphasizes transparency, liquidity, and compliance, which are vital elements for institutional adoption.
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Why This Proposal Matters
The SEC's decision on this proposal could set a powerful precedent. After greenlighting spot Bitcoin ETFs earlier this year, all eyes have been on what cryptocurrency might follow. XRP, known for its speed, low transaction fees, and established ecosystem, has long been a strong contender. With major names like WisdomTree and Cboe backing this move, the stakes couldn't be higher.
If approved, the WisdomTree XRP Fund would:
Open the floodgates for mainstream investors to gain direct exposure to XRP.
Boost liquidity and price discovery on regulated exchanges.
Create momentum for other altcoin ETFs (such as Ethereum Classic, Solana, or even Cardano in the future).
Signal growing institutional confidence in Ripple Labs and XRP despite past legal controversies.
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The SEC's Review Process
The SEC's review falls under Section 6(b)(5) of the Securities Exchange Act, which mandates that any exchange rule change must be:
Designed to prevent fraud and manipulation,
Protect investors and the public interest,
Promote fair and orderly markets.
The Commission is now accepting public comments as part of its standard process. This invites stakeholders—including retail investors, financial institutions, and academics—to weigh in on the proposal’s merits and risks.
This review phase doesn’t mean the fund will be approved. The SEC has historically taken a cautious stance with crypto-related products, often citing concerns over market manipulation, lack of oversight, and custodial risks. However, growing pressure from both investors and lawmakers has pushed the SEC to reconsider its earlier positions—especially after courts ruled in favor of Grayscale’s spot Bitcoin ETF appeal in 2023.
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What Makes XRP Unique?
Unlike Bitcoin or Ethereum, XRP was designed for cross-border payments and real-time settlement. With RippleNet and major banking partners already using the token, XRP is arguably one of the most utility-driven cryptocurrencies on the market.
Its use case, combined with a large and active global community, makes XRP an attractive candidate for a spot ETF. The SEC’s ongoing lawsuit against Ripple Labs—once a major hurdle—has seen key legal victories for Ripple, further paving the way for mainstream acceptance.
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The Road Ahead
Whether or not the WisdomTree XRP Fund gets approved, the mere fact that it has reached this stage speaks volumes about the evolution of crypto in regulated markets. A few years ago, the idea of a spot XRP ETF would have been unthinkable. Today, it's being seriously considered at the highest levels of financial oversight.
This is not just a regulatory checkpoint—it’s a turning point.
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Final Thoughts
The SEC’s review of the WisdomTree XRP Fund is more than just paperwork; it’s a potential inflection point for the entire crypto market. If approved, it could be the spark that ignites a new wave of institutional adoption, altcoin ETF listings, and increased credibility for blockchain assets.
For investors, traders, and crypto enthusiasts alike, this is a story worth watching. Whether you hold XRP or not, the outcome of this review could shape the future of digital asset investing in the United States and beyond.
Stay tuned—XRP’s Wall Street moment might be closer than ever.
