The U.S. Securities and Exchange Commission (SEC) has progressed WisdomTree’s application for a spot XRP exchange-traded fund (ETF) to a formal review stage, following the conclusion of the public comment period.
WisdomTree’s XRP ETF Moves for Formal Evaluation
This development places the proposal under further regulatory scrutiny, extending the timeline for a final decision by up to 240 days.
The proposal, submitted through the Cboe BZX Exchange, seeks to list and trade shares of the WisdomTree XRP Fund, which would track the real-time spot price of XRP. The fund’s valuation would be based on the CME CF Ripple-Dollar Reference Rate (New York Variant) and hold assets comprising XRP, cash, and cash equivalents.
Regulatory Process Moves Into Next Phase
According to the SEC release [34-103124], the regulatory agency has officially initiated proceedings to assess whether the proposed ETF aligns with the requirements of Section 6 of the Securities Exchange Act of 1934. The SEC’s next step involves a comprehensive evaluation of the application’s structure, with a particular focus on market integrity safeguards and measures to protect public interest.
The move neither approves nor denies the WisdomTree XRP Fund application but signals the agency’s intent to examine its merits in depth. Under Section 19(b)(2)(B) of the Exchange Act, the SEC retains the authority to extend its review window while gathering additional information and opinions to inform its final decision.
Potential Implications for Crypto ETFs
The WisdomTree XRP Fund aims to offer investors exposure to XRP without requiring direct custody of digital assets or private keys. If approved, it would enable market participants to gain XRP price exposure via conventional brokerage accounts, potentially expanding institutional and retail access to the cryptocurrency.
Market analysts suggest that the SEC’s handling of this application could have broader consequences for the digital asset ETF space. Given XRP’s legal history, including its previous regulatory dispute with the SEC, the agency’s deliberations carry weight not only for WisdomTree’s fund but for future crypto-based ETFs seeking approval in the U.S.
Industry Reaction and Outlook
According to Coincu Research, an approval of WisdomTree’s XRP ETF could substantially reshape investor access to the cryptocurrency, further driving institutional adoption and integration into mainstream financial markets. While the SEC remains cautious, its ongoing evaluations suggest a measured shift in approach to cryptocurrency-linked financial products.
Emily Clarke, Head of Research at Digital Asset Management, observed,
“The new SEC leadership appears to be embracing a more favorable regulatory stance, which could significantly affect ETF approvals in the crypto space.”
This sentiment reflects growing optimism that regulatory positions on digital asset investment vehicles may gradually soften under current leadership.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice