SEC begins review of first-ever spot XRP ETF application

The U.S. Securities and Exchange Commission (SEC) has announced that it has accepted for review an application to launch the country’s first spot ETF based on the XRP token. The initiative comes from investment firm WisdomTree, which plans to launch the fund under the name XRP Trust.

The application was submitted via the Cboe BZX exchange. The proposed product would track the price of XRP using the CME CF Ripple-Dollar Index, giving investors access to the digital asset through traditional brokerage accounts—without the need to hold tokens in crypto wallets.

Potential impact on the market

If the SEC gives the green light to this product, it would become the first officially approved spot XRP ETF in the United States. This could open the door to a wave of new ETF applications based on other cryptocurrencies, continuing the momentum sparked by previously approved Bitcoin and Ethereum funds.

Additionally, the SEC has already published a notice, officially initiating the expert and public review phase. The commission now has up to 240 days to issue a final decision on the application.

The launch of this ETF could significantly lower the entry barrier for both retail and institutional investors looking to gain exposure to XRP through familiar financial instruments.

Context and related developments

Alongside the application, the SEC has invited public comments on whether the ETF structure adequately addresses concerns around market manipulation and investor protection. Ripple’s chief legal officer, Stuart Alderoty, also sent a letter to the commission emphasizing the need for clear and consistent regulatory guidelines. According to him, current legal ambiguity hampers the growth of the crypto market and creates unnecessary challenges for its participants.

It is worth noting that in 2023, a court ruled that retail sales of XRP through exchanges did not violate securities laws. Following a leadership change, the SEC dropped its appeal in the case.

Meanwhile, interest in XRP continues to grow across the market. This week, it was reported that investment firm Volatility Shares is preparing to launch a futures-based XRP ETF on Nasdaq. In parallel, Dubai authorities announced plans to tokenize real estate using Ripple’s XRP Ledger technology.