SEC Commences Review of WisdomTree’s Spot XRP ETF Proposal

The U.S. Securities and Exchange Commission (SEC) has begun its formal review of the WisdomTree XRP Trust, a proposed spot ETF that would enable investors to gain exposure to XRP through traditional brokerage platforms.

Submitted via the Cboe BZX Exchange, this filing is the first spot XRP ETF application to undergo the SEC’s official scrutiny. Approval would mark a landmark moment as the first U.S. spot XRP ETF, potentially opening doors for spot ETFs on other cryptocurrencies.

The ETF is designed to mirror the market value of XRP by referencing the CME CF Ripple-Dollar Reference Rate. This approach allows investors to access XRP without the complexities of self-custody or private key management.

Under Release No. 34-103124, the SEC has started a comprehensive review process, which may last up to 240 days. During this period, the agency is soliciting public feedback to evaluate the ETF’s measures to prevent market manipulation and protect investors.

Ripple’s Chief Legal Officer Stuart Alderoty has also weighed in, urging the SEC to avoid classifying XRP as a security. In a letter to the SEC’s crypto task force, Alderoty called for clear regulatory guidelines and warned against vague standards such as “fully functional” or “decentralized” that risk confusing market participants.