What to consider:

• The SEC has started reviewing WisdomTree’s XRP Trust, a proposed spot ETF designed to give exposure to XRP without the need for actual token ownership.
• This represents the very first SEC assessment of a U.S.-based spot XRP ETF, which might set a precedent for similar offerings in the crypto sector.
• The SEC has a window of 240 days to make a decision on the application, during which it will accept public feedback regarding investor protection and market manipulation concerns.

The U.S. Securities and Exchange Commission (SEC) has officially started reviewing the WisdomTree XRP Trust, a proposed exchange-traded fund (ETF) allowing investor access to XRP. If this application, which was submitted by the Cboe BZX Exchange, is approved, it would mark the first ever U.S. spot XRP ETF, potentially paving the way for similar products related to other crypto assets.

This proposed ETF would track XRP’s market value through the CME CF Ripple-Dollar Reference Rate, allowing investors to gain exposure via traditional brokerage accounts instead of needing private keys or self-custody.

The SEC has published its notice under Release No. 34-103124, commencing a comprehensive evaluation of the application. The Commission now has a period of up to 240 days to approve or dismiss the proposal.

While this process is underway, the agency is encouraging public commentary on whether the ETF’s structure sufficiently addresses concerns about market manipulation and investor safety.

Meanwhile, in a recent letter to the SEC’s crypto taskforce, Ripple’s Chief Legal Officer, Stuart Alderoty, asserted that XRP should not be classified as a security in its own right.

Today, @Ripple submitted an additional letter to the SEC’s Crypto Task Force addressing a key question from Commissioner Peirce’s “New Paradigm” speech: When does a digital asset separate from an investment contract?
We appreciate the continued engagement with the Task Force.…
— Stuart Alderoty (@s_alderoty) May 27, 2025

Alderoty remarked, “Regulations must be clear for all market participants, otherwise the risk of being incorrectly classified as securities exchanges, brokers, or issuers looms, adding unnecessary ambiguity. "