The U.S. Securities and Exchange Commission (SEC) has officially initiated its review of the WisdomTree XRP Trust, a proposed spot exchange-traded fund (ETF) that would give investors regulated exposure to XRP without requiring direct token ownership or self-custody. Filed by the Cboe BZX Exchange, this application represents the first formal SEC evaluation of a U.S.-based spot XRP ETF, marking a potential milestone in the integration of cryptocurrencies into traditional finance. The ETF would track XRP's price using the CME CF Ripple-Dollar Reference Rate, enabling access through standard brokerage accounts.
As part of its 240-day review process, the SEC is seeking public comments on the proposal's approach to investor protection and market manipulation concerns. Ripple’s Chief Legal Officer, Stuart Alderoty, also submitted a letter to the SEC's crypto taskforce, reinforcing the view that XRP itself is not a security and advocating for clearer regulatory standards across the industry. If approved, this ETF could open the door for similar crypto asset products and accelerate institutional adoption of digital assets in the United States. The outcome of this review may set a significant precedent for future crypto ETFs and the broader regulatory landscape.