XRP News Today: SEC Begins Review of WisdomTree XRP Trust ETF

The U.S. Securities and Exchange Commission (SEC) has formally begun reviewing the WisdomTree XRP Trust, a proposed spot exchange-traded fund (ETF) that aims to provide exposure to XRP without direct token ownership. This development marks a significant milestone as it is the first time the SEC has initiated a review process for a spot XRP ETF in the United States. The SEC has opened a public comment period to gather input on the market risks associated with the ETF and has up to 240 days to make a decision on the application. The review process involves evaluating whether the proposed rule change to list WisdomTree's XRP ETF on Cboe BZX is designed to prevent fraudulent and manipulative practices.

WisdomTree’s spot XRP ETF has been formally reviewed by the U.S. Securities and Exchange Commission, which is a big achievement for cryptocurrency investment products. The SEC filing seeks to allow the Cboe BZX Exchange to list and trade shares under special rules for commodity-based trust shares. The development comes after WisdomTree registered its S-1, placing it alongside other companies looking to bring similar funds to market.

The application from WisdomTree is aimed at developing an exchange-traded fund that mirrors the daily pricing of XRP, the third biggest cryptocurrency by market capitalization. Bank of New York Mellon will manage the fund, holding XRP to track its value as measured by the Compass Crypto Reference Index XRP – 4pm NY Time. Nasdaq will offer the shares, so buyers can use a regulated method to invest in XRP without needing to own it directly.

A notice from the SEC published on February 18, 2025, acknowledged the request to list the ETF. According to the filing, the fund’s shares are meant to be a practical way for investors to invest their money. Investors usually trade shares using brokers and must pay regular fees. The public is now invited to comment on the proposal, as the SEC reviews it following standard practice.

The structure of an ETF helps reduce possible risks linked to owning XRP, such as online threats and handling your wallet. However, the prospectus points out that the shares are considered speculative. There is a high risk that investors can lose everything they put into XRP because of its high volatility and lack of clear regulations.

After authorizing spot Bitcoin and Ether ETFs in 2024, the SEC’s review means there is growing approval for crypto-related financial products. For the purpose of introducing XRP ETFs, WisdomTree has partnered with Bitwise and Canary Capital. The Cboe BZX Exchange’s proposed rule change demonstrates how digital assets are being absorbed into traditional finance.

Reviewers make sure that the company complies with all the rules set by securities laws and market protections. Because of previous legal challenges about XRP being regulated like a security, XRP ETFs are examined more closely than other ETFs. The SEC’s ruling on Huobi’s ETF could influence other ETFs in the altcoin market and change how crypto assets are invested.

Those considering the fund should understand that it carries significant risks. The prospectus mentions that changes in XRP’s price and regulations may change the returns you receive. The SEC has not decided yet on approving or disapproving the fund, and the review could go on into late 2025.

The report shows that more institutions are showing interest in XRP. Should it be approved, the ETF could draw in substantial investment, letting investors choose a regulated option for crypto. The SEC welcomes feedback from stakeholders during the comment period, which may impact the final decision.