SEC starts assessment of first spot XRP ETF bid

The U.S. Securities and Exchange Commission has initiated a formal review of a bold new proposal: a spot-based ETF centered on the XRP token. This marks the first time such a product, if approved, could become available to U.S. investors. The submission comes from asset manager WisdomTree, which aims to introduce the fund under the name XRP Trust through the Cboe BZX exchange.

Rather than requiring direct interaction with crypto wallets or token custody, this fund would mirror XRP’s market price using the CME CF Ripple-Dollar Index—giving investors a streamlined, traditional pathway to access one of the most recognized digital assets.

What’s at stake for the crypto sector

An SEC green light would do more than just validate XRP—it could reset the pace of institutional adoption for altcoins. The XRP Trust would stand as the first ETF of its kind in the U.S., following the regulatory momentum created by earlier spot products for Bitcoin and Ethereum.

If approved, this fund could:

• Lower the complexity of entering the XRP market by removing wallet/custody requirements
• Enhance credibility for XRP among traditional investors and financial institutions
• Encourage diversification of crypto-based ETF offerings beyond BTC and ETH
• Attract larger capital flows due to easier access via brokerage accounts
• Influence regulatory tone by demonstrating that altcoin ETFs can align with investor protection norms.

The implications would reach far beyond one token—potentially reshaping how regulators and investors approach the broader crypto ETF landscape.

A shifting regulatory narrative

The SEC’s review includes a 240-day window, during which public and institutional feedback will be collected and considered. In tandem, Ripple’s legal team is urging regulators to clarify where the boundaries lie. Stuart Alderoty, the company’s Chief Legal Officer, submitted a formal appeal to the SEC, pressing for regulatory stability and coherent policy—a necessity, he argues, for long-term industry growth.

This comes on the heels of a landmark 2023 court ruling that cleared XRP's retail sales of securities violations. That judgment led the SEC, under new leadership, to abandon its planned appeal—removing a key legal overhang from the token's future.

XRP gaining momentum beyond U.S. borders

While the SEC deliberates, XRP continues gaining traction globally. For instance:

• Volatility Shares has announced plans for a futures-based XRP ETF to launch on Nasdaq
• Dubai regulators are working on tokenizing real estate using XRP Ledger infrastructure

These moves suggest that institutional demand for XRP-related products is not only growing—but evolving fast. Whether the SEC embraces this trend or not, market forces are already at work.