XRP ETF Review Begins as SEC Evaluates WisdomTree Proposal

XRP ETF developments are gaining traction in the United States as the U.S. Securities and Exchange Commission (SEC) officially launched a review to assess the WisdomTree XRP Fund. This announcement marks a major milestone for Ripple’s native token and could lead to one of the first XRP-based exchange-traded funds getting U.S. approval.

If this initiative receives the green light, the XRP fund will be listed on the Cboe BZX Exchange under the stipulated Commodity-Based Trust Shares rules—paving the way for greater institutional access to cryptocurrency through traditional financial markets.

The journey began on February 6 when the Cboe BZX Exchange submitted a formal application to the SEC for the fund listing and trading. Not long after, the proposal was published in the Federal Register on February 26, triggering the standard period for public commentary. The fund’s proposal has now entered a significant evaluation phase as the SEC proceeds to make a final determination.

SEC Moves to Evaluate Compliance and Market Integrity

On May 27, the SEC issued an official notice initiating proceedings to ascertain if the WisdomTree XRP ETF adheres to relevant legal and regulatory prerequisites. This came months after the March 11 extension that offered additional time for review and stakeholder input.

The core of the SEC’s investigation focuses on whether the ETF complies with Section 6(b)(5) of the Securities Exchange Act. This section mandates that exchange rules be designed to prevent market manipulation and protect investors against fraudulent activities.

As part of the review, the SEC is inviting public comments on the matter. Interested individuals and institutions have a 21-day window, starting from the proposal’s Federal Register publication, to submit their thoughts. Those wishing to respond to initial comments can do so within a 35-day rebuttal period. All feedback can be submitted via the SEC’s website or by email using file number SR-CboeBZX-2025-019.

XRP ETF Structure and Market Impact

The WisdomTree XRP Fund is engineered to replicate the market performance of XRP by referencing the CME CF Ripple-Dollar Reference Rate. The ETF is structured as a cash-settled product, with its holdings limited to XRP, cash, and cash-equivalent assets.

Shares in the ETF will be issued and redeemed in minimum blocks of 5,000 units exclusively through cash transactions by authorized participants. The fund will follow a daily valuation schedule, using pricing data locked in at 4:00 p.m. Eastern Time, aligning with the referenced benchmark’s methodology. Unlike some ETFs, in-kind redemptions or creations involving physical XRP will not be permitted.

Should the SEC approve the offering, the WisdomTree XRP Fund could become a pivotal financial instrument in the U.S., giving institutional and retail investors direct exposure to XRP—a move that could boost market legitimacy and adoption of the digital asset.

The WisdomTree filing is part of a broader industry push to introduce Ripple-based ETFs to American markets. Other financial players such as Bitwise, Grayscale, and Franklin Templeton have also submitted proposals, though these have recently experienced regulatory delays.

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

As the SEC continues its analysis, the Ripple and broader crypto community are watching closely. Approval of such a product could represent a breakthrough moment for XRP, offering traditional investors exposure to blockchain-based assets through a regulated mechanism.