The potential approval of a U.S.-based spot XRP exchange-traded fund (ETF) is progressing, as the Securities and Exchange Commission (SEC) has officially initiated its review of the WisdomTree XRP Trust application. This marks a significant step toward bringing a regulated XRP investment vehicle to mainstream markets.
Cboe BZX Exchange submitted the proposal, which the SEC is now evaluating based on criteria including market integrity and investor protection standards. The official review, outlined in Release No. 34-103124, starts a 240-day period during which the regulator must reach a decision. This process also allows for public commentary, adding a layer of transparency to the proceedings.
If approved, the ETF would track XRP’s market price using the CME CF Ripple-Dollar Reference Rate. This structure enables investors to gain exposure to XRP through conventional brokerage accounts without dealing with private keys or self-custody methods—making cryptocurrency investment more accessible to the general public.
This development is particularly noteworthy as it may indicate a broader acceptance of altcoins within regulated financial products, moving beyond the dominance of Bitcoin and Ethereum in the ETF space.
Other Pending Spot XRP ETF Applications
Multiple asset management firms have expressed interest in launching similar products, though most are still in preliminary phases. Companies such as 21Shares, Grayscale, Bitwise, and Franklin Templeton have filed initial applications but have not yet advanced to the more formal 19b-4 submission stage.
Franklin Templeton’s proposal, also filed through Cboe BZX, recently had its decision timeline adjusted. The SEC has extended the review period, with a new deadline set for June 17, 2025, to allow sufficient time for evaluation under Section 19(b)(2) of the Securities Exchange Act.
Market sentiment appears optimistic regarding eventual approval. Prediction markets currently indicate an 83% probability that a spot XRP ETF will be approved in the U.S. by the end of 2025.
Should approval occur, the United States would become the second country to offer such a product. Brazil launched the XRPH11 ETF earlier, listed on the B3 exchange as the XRP HASH CI ETF. However, due to the relatively small scale of Brazil’s financial market, the product has had limited influence on XRP’s global price action.
Current XRP Market Performance
As of the latest data, XRP is trading at approximately $2.31, reflecting a minor decline of 0.5% over the past 24 hours and nearly 2% over the weekly timeframe. Market analysts are closely watching the $2.50 resistance level, which is considered crucial for any sustained upward movement.
Breaking through this barrier could signal renewed investor confidence and potentially lead to new price highs, especially if regulatory developments continue to advance positively.
What a Spot XRP ETF Means for Investors
The introduction of a spot XRP ETF would represent a major milestone for both cryptocurrency adoption and traditional finance. It would provide a familiar, regulated avenue for institutional and retail investors to gain exposure to XRP without directly holding the underlying asset.
This could lead to increased liquidity, improved price discovery, and greater overall market stability for XRP. Moreover, it may pave the way for other altcoins to eventually receive similar financial products, diversifying the crypto ETF landscape beyond the two largest cryptocurrencies.
For those interested in tracking these developments in real time, 👉 monitor official regulatory updates here.
Frequently Asked Questions
What is a spot XRP ETF?
A spot XRP ETF is an exchange-traded fund that holds actual XRP tokens and aims to track its market price. It allows investors to buy and sell shares that represent ownership in the underlying asset without needing to manage the tokens directly.
How does the SEC approval process work?
The SEC reviews ETF applications based on market fairness, investor protection, and compliance with federal securities laws. The process includes periods for public comment and may involve multiple deadlines and extensions before a final decision is reached.
Why is the WisdomTree application significant?
WisdomTree’s XRP Trust is among the first spot XRF ETF applications to enter the formal review phase with the SEC. Its progression signals serious regulatory consideration and sets a precedent for other pending proposals.
Can the public participate in the approval process?
Yes. When the SEC publishes a notice of filing in the Federal Register, the public is invited to submit comments and opinions regarding the proposed rule change. This feedback is considered as part of the overall evaluation.
How would an XRP ETF affect the price of XRP?
Approval would likely increase demand from investors who prefer regulated products, potentially driving up the price. It would also enhance legitimacy and visibility, attracting more institutional investment.
Is there already an XRP ETF available elsewhere?
Yes, Brazil has an XRP-backed ETF trading on its B3 stock exchange. However, its impact on the global market has been limited due to the smaller size of the Brazilian investment market.