The long-anticipated arrival of an XRP spot ETF in the United States has taken a significant step forward. The U.S. Securities and Exchange Commission (SEC) has officially begun its review of the WisdomTree XRP Trust, a proposed ETF designed to offer regulated exposure to XRP without requiring direct token ownership.
SEC Begins Formal Evaluation of XRP ETF
Submitted by the Cboe BZX Exchange, the WisdomTree XRP Trust marks the first formal review of a spot XRP ETF in the U.S. If approved, the fund would track XRPās market value using the CME CF Ripple-Dollar Reference Rate, allowing investors to gain price exposure through traditional brokerage platforms ā eliminating the complexities of wallets and private key management.
The SEC published its initial notice under Release No. 34-103124, initiating a 240-day countdown for approval, denial, or further delays. In parallel, the Commission has invited public comment on critical aspects such as:
- Whether the ETF sufficiently protects investors
- How it guards against market manipulation
- If the proposed design meets standards set for other crypto ETFs
Ripple Responds with Legal Commentary
In a related move, Rippleās Chief Legal Officer Stuart Alderoty submitted a letter to the SECās Crypto Task Force this week. The letter addresses one of the central concerns around digital asset classification raised in Commissioner Hester Peirceās “New Paradigm” speech.
“Rules must be clear not just for issuers, but for all market participants,” Alderoty wrote, urging the SEC to abandon vague terminology like āfully functionalā and ādecentralizedā, which he argues contribute more to regulatory confusion than to clarity.
Ripple maintains that XRP itself is not a security, even if offered within investment contracts ā a position that remains at the heart of the Ripple vs. SEC legal battle.
Whatās Next for XRP ETFs?
If the WisdomTree XRP Trust gains approval, it would set a powerful precedent for other crypto asset spot ETFs, building on the momentum from recent approvals of spot Bitcoin ETFs and surging interest in Ethereum-based offerings.
The SECās final decision is expected by early 2026, unless accelerated. Until then, the crypto industry, institutional investors, and retail traders alike will closely monitor how the SEC handles one of the most watched digital assets after Bitcoin and Ethereum.