Securities and Exchange Commission Initiates Initial Evaluation of Spot XRP Exchange-Traded Fund
The U.S. Securities and Exchange Commission (SEC) has officially commenced the evaluation of an application seeking to launch a WisdomTree XRP exchange-traded fund (ETF) on the Cboe BZX Exchange. The review, initiated on May 28, 2025, marks the first instance of the SEC formalizing a review process for a spot XRP ETF in the United States.
In this review, the SEC is examining whether the suggested rule change for the XRP ETF listing is designed to hinder fraudulent and manipulative practices. The broad objectives are to protect investors and promote public interest. The SEC has initiated a public comment period, inviting interested parties to provide their insights on the proposal's merits and any concerns regarding market manipulation and investor protection. The agency has approximately 240 days to arrive at a decision.
Should this proposal be approved, the WisdomTree ETF would not mark the first instance of an XRP fund being listed in the U.S. Precedents have already been set in recent months, with the Vermont-based asset manager Teucrium launching the first leveraged XRP ETF and ProShares listing three futures ETFs on NYSE Arca towards the end of May.
The evaluation of this specific XRP ETF application is being closely observed within the industry as it could set a precedent for the SEC's approach towards cryptocurrency ETFs beyond Bitcoin and Ethereum. The initial stages of the review have seen some upward movement in XRP's price.
It is essential to note that the initiation of proceedings for the proposal does not guarantee the SEC's approval of the WisdomTree XRP ETF. The final decision lies with the SEC, and the outcome remains uncertain.
- Despite the Teucrium-led launch of a leveraged XRP ETF and ProShares' futures ETFs, the evaluation of the WisdomTree XRP ETF application is significant as it could shape the SEC's stance on cryptocurrency ETFs beyond Bitcoin and Ethereum.
- The SEC's review of the WisdomTree XRP ETF application involves assessing whether the rule change is designed to prevent fraudulent and manipulative practices, with investor protection and public interest being the primary objectives.
- As the SEC continues its review of the WisdomTree XRP ETF application, upcoming decisions on whether to approve the fund remain uncertain, despite the initial upward movement in XRP's price.
