WisdomTree’s XRP ETF Faces SEC Scrutiny in Landmark Review
The U.S. Securities and Exchange Commission (SEC) has begun a formal review of WisdomTree’s application to list a spot XRP exchange-traded fund (ETF), a move that could pave the way for broader institutional access to the cryptocurrency.
Submitted via the Cboe BZX Exchange, the filing marks the SEC’s first substantive review of a U.S.-based spot ETF tied to XRP. If approved, the fund would offer investors direct exposure to XRP through traditional brokerage platforms, tracking the token’s market price via the CME CF Ripple-Dollar Reference Rate.
This review begins under SEC Release No. 34-103124, launching a period that could extend up to 240 days, during which the Commission must decide whether the fund meets regulatory standards on investor protection and market integrity.
In conjunction with its review, the SEC is soliciting public comments on whether the proposed ETF includes sufficient safeguards against price manipulation and addresses broader investor risks.
Ripple’s Chief Legal Officer, Stuart Alderoty, weighed in with a letter to the Commission’s crypto division, arguing that XRP should not be treated as a security and warning that vague regulatory language risks ensnaring legitimate market participants.
“The industry needs clarity,” Alderoty wrote, “not more confusion from undefined terms that create compliance uncertainty for investors and developers alike.”
