XRP ETF Gains Momentum as SEC Reviews WisdomTree Filing

XRP ETF approval in the U.S. may be edging closer as the Securities and Exchange Commission (SEC) officially begins reviewing a spot ETF petition from WisdomTree. This move has sparked optimism among crypto investors and institutional players that a regulated investment vehicle tied to XRP could soon be accessible in traditional markets.

The proposal, submitted by the Cboe BZX Exchange, represents the first-ever formal SEC assessment of a spot XRP exchange-traded fund in the United States. Should the SEC give it the green light, the initiative would mark a pioneering moment for XRP on Wall Street, paving the way for further institutional adoption of the digital asset.

If approved, the WisdomTree XRP Trust would be directly linked to XRP’s performance via the CME CF Ripple-Dollar Reference Rate. This methodology enables investors to tap into XRP’s price movements without the complexities of managing digital wallets or handling private keys — a significant milestone for mainstream crypto adoption.

The SEC announced its intent to study the ETF application more deeply in Release No. 34-103124. The agency now enters a statutory review period of up to 240 days, during which it will gather public input and examine the product for potential investment risks, particularly those related to market manipulation and client safeguards.

As part of that process, the SEC has invited stakeholders to comment on whether the structural and regulatory elements of the ETF meet standards for investor security and market integrity. The outcome could influence future ETF applications tied to other cryptocurrencies, depending on how regulators respond to ongoing industry feedback.

Alongside this development, Ripple Labs continues to reinforce its legal stance regarding XRP’s regulatory classification. Stuart Alderoty, Ripple’s Chief Legal Officer, voiced concerns in a recent letter addressed to the SEC’s crypto taskforce. He emphasized the importance of clear policy guidance, cautioning against nebulous terms that could unnecessarily entangle legitimate market participants in legal uncertainty.

“Rules must be clear not just for issuers, but for all market participants who could be unwittingly classified as securities exchanges, brokers, dealers, or issuers,” Alderoty wrote. He further argued that overreliance on concepts like ‘fully functional’ or ‘decentralized’ has fostered more ambiguity than clarity in the current regulatory environment.

As Ripple’s legal battle over XRP’s status continues to shape crypto jurisprudence, the SEC’s deliberation over the WisdomTree spot ETF could serve as a critical turning point. Approval would not only offer easier access to XRP for traditional investors, but also suggest that regulators are becoming increasingly receptive to cryptocurrency-based investment products — particularly those backed by reputable financial firms.

Though no decision is imminent, the ETF review is a strong signal of change, suggesting that the U.S. may soon recognize XRP as a viable asset for mainstream financial portfolios.

Related: Expert Advice: Sell XRP If You’re Confused

For more detailed insights on the SEC’s announcement, see Release No. 34-103124.