U.S. Spot XRP ETF Inches Closer as SEC Begins Formal Review Process

The prospect of a U.S.-based spot XRP exchange-traded fund (ETF) is gaining momentum, as the Securities and Exchange Commission (SEC) has initiated a formal review of the WisdomTree XRP Trust. This proposed ETF aims to provide investors with exposure to XRP without requiring direct ownership of the cryptocurrency. The SEC’s evaluation will focus on whether the ETF offers sufficient investor protection and safeguards against market manipulation.

This development marks the first time the SEC has formally reviewed a U.S.-based spot XRP ETF application. If approved, it could pave the way for similar products across other crypto assets. The SEC now has up to 240 days to approve or reject the filing, during which it is soliciting public comments on the ETF’s design and its measures to address concerns related to market manipulation and investor protection.

The potential approval of a spot XRP ETF follows a series of developments in the crypto ETF landscape. Earlier this year, ProShares received tacit approval from the SEC to launch three XRP-tracked ETFs, including leveraged and inverse products. Additionally, XRP futures began trading on the Chicago Mercantile Exchange (CME), providing regulated futures tracking the price of XRP in the U.S.

Industry experts view these developments as indicative of a broader trend toward the integration of cryptocurrencies into traditional financial markets. Ripple CEO Brad Garlinghouse has expressed optimism about the inevitability of XRP ETFs, alongside those for other cryptocurrencies like Solana and Cardano.

As the SEC continues its review process, the approval of a spot XRP ETF would represent a significant milestone in the maturation of the cryptocurrency market, offering investors a new avenue for exposure to digital assets through traditional investment vehicles.