XRP ETF Review Begins: A Pivotal Moment for Crypto and Regulation

An XRP ETF in the US? What has long been a dream of many investors could soon become a reality. The US Securities and Exchange Commission (SEC) has officially launched the review process for the “WisdomTree XRP Trust” – the first application for an XRP spot ETF that directly tracks the market price of XRP. If approved, it would be a historic step for Ripple and the entire crypto industry.

What’s behind WisdomTree’s XRP ETF?

The planned XRP ETF will track the XRP price via the CME CF Ripple-Dollar Reference Rate, without requiring investors to hold or custody tokens themselves. Instead, access will be provided via traditional brokerage accounts – a decisive advantage for institutional investors and anyone who doesn’t want to deal with wallets, private keys, or self-custody.

The filing was made through the Cboe BZX Exchange. The SEC now has up to 240 days to decide on the application for an XRP ETF. During this time, the agency is also seeking public comment, particularly on issues related to anti-manipulation and investor protection.

Regulatory tug-of-war: Is XRP a security?

Alongside the XRP ETF review, Ripple also spoke out. In a letter to the SEC’s Crypto Working Group, Chief Legal Officer Stuart Alderoty reiterated that XRP is not a security and should not be treated as such for regulatory purposes. The debate about the status of digital assets has been further complicated by vague terms like “fully functional” or “decentralized,” Alderoty said.

The XRP ETF could therefore not only establish a new financial product, but also help to legally clarify how cryptocurrencies will be categorized in the future – with far-reaching implications for other coins and tokens.

Conclusion: XRP is about to take a historic step

The official review of the first XRP spot ETF shows that the SEC is moving—albeit slowly—toward clearer rules and greater product diversity in the crypto market. For you as an investor, this means that regulated access to XRP via established platforms is getting closer, without the detour via wallets or crypto exchanges.

Whether approval will ultimately be granted remains to be seen – but one thing is clear: the XRP ETF is no longer a niche topic, but has arrived on the radar of regulators.

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(Featured image by Alesia Kozik via Pexels)

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