SEC Begins Evaluation of WisdomTree’s XRP Spot ETF Application
The U.S. Securities and Exchange Commission (SEC) has officially launched a review process for WisdomTree’s proposed XRP spot exchange-traded fund (ETF), marking a significant step toward broader cryptocurrency ETF offerings in the U.S. market.
Filed through the Cboe BZX Exchange, the application represents the first time the SEC has formally examined a spot ETF focused on XRP. If greenlit, it would become the inaugural U.S. spot XRP ETF, potentially setting a precedent for similar crypto asset products.
This ETF intends to track XRP’s market price by utilizing the CME CF Ripple-Dollar Reference Rate, giving investors a straightforward way to gain XRP exposure via standard brokerage accounts—eliminating the need for self-custody or managing private keys.
The SEC’s notice, released under number 34-103124, initiates a review period of up to 240 days during which the agency will assess whether the ETF’s structure sufficiently addresses investor protection and manipulation concerns. The SEC is also inviting public commentary on the proposal.
Ripple’s Chief Legal Officer Stuart Alderoty recently emphasized in correspondence to the SEC’s crypto task force that XRP should not be classified as a security. Alderoty highlighted the necessity for clear regulatory definitions to avoid inadvertently labeling market participants as securities entities and cautioned against ambiguous regulatory language that could sow confusion.
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