SEC Begins Review of WisdomTree’s Proposed XRP Spot ETF
The U.S. Securities and Exchange Commission (SEC) has officially started examining the WisdomTree XRP Trust, a proposed spot exchange-traded fund (ETF) designed to give investors direct exposure to XRP.
This application, submitted by the Cboe BZX Exchange, represents the first formal SEC review of a U.S.-based spot XRP ETF. If approved, it would mark a significant milestone as the country’s first spot XRP ETF, potentially paving the way for similar ETFs linked to other cryptocurrencies.
The ETF aims to track XRP’s market price using the CME CF Ripple-Dollar Reference Rate. This would allow investors to buy XRP exposure through standard brokerage accounts without having to manage private keys or deal with self-custody risks.
The SEC issued its notice under Release No. 34-103124, launching a detailed evaluation process that could take up to 240 days to reach a decision. Meanwhile, the Commission is inviting public comments to assess whether the ETF’s structure adequately addresses issues related to investor protection and safeguards against market manipulation.
In a related development, Ripple’s Chief Legal Officer Stuart Alderoty submitted a letter to the SEC’s crypto task force this week, arguing that XRP should not be classified as a security. Alderoty emphasized the need for regulatory clarity, cautioning against ambiguous criteria like “fully functional” or “decentralized,” which he says only add confusion for market participants such as exchanges, brokers, and issuers.
