The US SEC officially launches the review of WisdomTree XRP Spot ETF.

On May 27, 2025, the U.S. Securities and Exchange Commission (SEC) officially announced the initiation of its review process for the listing application of the WisdomTree XRP Spot exchange-traded fund (ETF). According to the SEC’s official announcement, this review will focus on the WisdomTree XRP fund application submitted by the Cboe BZX exchange, which aims to provide investors with direct exposure to XRP prices by tracking the CME CF Ripple-Dollar reference Interest Rate, without the need to hold the actual encryption assets. The SEC emphasized that the review will rigorously assess whether the proposal meets regulatory requirements to prevent fraud, market manipulation, and protect investor interests.

Review procedure initiated: 21-day public comment period opened.

According to the announcement released by the SEC (No. [34-103124]), the application for the WisdomTree XRP Fund has officially entered the review stage. From the date of publication in the Federal Register, the SEC will open a 21-day public comment window, allowing market participants, investors, and other stakeholders to submit opinions on the legality, potential risks, and market impact of the ETF. The deadline for submitting rebuttals is 35 days. This process not only reflects the SEC’s high regard for public participation but also provides a basis for regulatory agencies to further improve the regulatory framework for digital assets.

@ChainCatcher_ pointed out on platform X that the SEC has the authority to extend the review period up to a maximum of 240 days, with the final decision expected to be announced by the end of October 2025.

The review was not an outright approval or rejection, but entered into a rigorous evaluation cycle. The SEC will focus on reviewing the XRP market’s liquidity, price manipulation risks, and the adequacy of investor protections. Considering XRP’s previous legal battles with the SEC, this process may face additional challenges. Although the 2023 court ruling partially dismissed the SEC’s allegations that XRP is a security, uncertainty about its legal status remains a key obstacle to approval.

WisdomTree XRP ETF: Design and Significance

As a world-renowned asset management company, WisdomTree has made frequent moves in the field of crypto assets in recent years, and has successfully launched a Bitcoin spot ETF. The XRP ETF application submitted by it is planned to be listed on the Cboe BZX exchange under the ticker symbol “TICKER”. The fund’s assets are mainly composed of XRP, cash and cash equivalents, and are benchmarked against the CME CF Ripple-Dollar reference rate, aiming to provide investors with a low-cost, high-transparency XRP investment channel. The Bank of New York Mellon (BNYM) acted as custodian, administrator and transfer agent for the fund, ensuring operational compliance and transparency.

XRP, as the native token of the Ripple network, is known for its widespread use in the field of cross-border payments. RippleNet has partnered with several global financial institutions, such as American Express and SBI, to enable fast and low-cost international transfers. However, the legal controversies surrounding XRP have slowed its progress in the ETF space. If the WisdomTree XRP ETF is approved, it will become another milestone product in the crypto market following the Spot ETFs for Bitcoin and Ethereum, providing a convenient way for traditional investors to enter the XRP market.

Market response: optimism and caution coexist.

After the news was announced, @BSCNews and @BSCNheadlines posted that “SEC has initiated the review of WisdomTree XRP spot ETF application,” sparking widespread discussion. Some investors are optimistic about the approval prospects, with @Xaif_Crypto even predicting that “the approval of the XRP spot ETF is imminent.” However, @sougoha23sai pointed out that although the XRP market foundation is “rock solid,” its price has not seen a significant increase, reflecting the market’s cautious attitude towards the approval results.

Industry analysts believe that the approval of XRP ETFs will have a profound impact on the crypto market. According to Hotcoin Research, spot ETFs hold the underlying assets directly, which has a more significant impact on prices than futures ETFs, and can attract more institutional and retail investors. If approved, the WisdomTree XRP ETF could drive further XRP price and market adoption. However, the SEC’s concerns about the risk of market manipulation could lengthen the approval time or even lead to a veto.

Regulation and Market Prospects

The approval of the XRP ETF comes amid positive changes in the crypto regulatory environment. After the Trump administration took office, the market widely expected a more crypto-friendly policy in the United States, which added an element of optimism to the approval of XRP ETFs. But the SEC’s cautious approach to digital assets remains, especially as the legal status of XRP is not yet fully clear. The approval of WisdomTree’s application will depend on its ability to effectively address the SEC’s concerns about market manipulation and investor protection.