XRP on Wall Street: SEC’s Review of WisdomTree’s ETF Proposal Signals New Era for Crypto Integration
- Samantha
- May 28, 2025
- 3 min read
The U.S. Securities and Exchange Commission (SEC) has formally initiated the review process for WisdomTree's proposed spot XRP exchange-traded fund (ETF), a move that could reshape the landscape of institutional crypto investing. Announced on May 28, 2025, the SEC’s engagement with this proposal places XRP among a select group of digital assets under serious consideration for traditional financial market products. This development follows a growing trend of cryptocurrency ETFs, such as Bitcoin and Ethereum, making their way into mainstream portfolios.
A Historic Milestone for XRP
The proposal, titled WisdomTree XRP Trust, aims to create a regulated investment vehicle that mirrors the performance of XRP, one of the world's largest cryptocurrencies by market capitalization. The ETF would use the CME CF Ripple-Dollar Reference Rate to benchmark XRP’s price, offering investors direct exposure without the complications of digital wallets, custody solutions, or private keys. For institutional investors seeking a familiar way to access the crypto market, the ETF structure represents a significant leap forward.
If approved, this would be the first U.S.-listed spot XRP ETF—adding a layer of legitimacy to XRP in the eyes of Wall Street. The proposal comes amid broader institutional interest in crypto-backed financial products and reflects the maturing relationship between digital assets and traditional finance.
Regulatory Context and Timeline
The SEC’s review includes a public comment period, where stakeholders are invited to weigh in on the proposed ETF’s market implications, investor protections, and mechanisms for mitigating manipulation. According to regulatory protocol, the SEC can extend its decision timeline up to 240 days, during which it will analyze technical, legal, and economic aspects of the ETF.
While approval is not guaranteed, the SEC’s willingness to entertain the filing signals a more open approach compared to earlier years of hardline resistance against crypto ETFs. Notably, the SEC had long withheld approvals for Bitcoin ETFs before finally greenlighting several spot Bitcoin funds earlier in 2024, which were met with massive inflows from institutional investors.
Implications for XRP and the Crypto Market
Should the SEC approve the WisdomTree XRP ETF, the ramifications for the broader market could be profound. Market analysts suggest that institutional inflows into XRP could lead to substantial price increases, with some projections targeting a market cap of $1.5 trillion. While these estimates are optimistic, they reflect the level of confidence that regulated financial products can instill in an asset's future.
Moreover, the ETF could serve as a precedent for other altcoins—such as Solana, Cardano, and even stablecoins—seeking ETF approval. The ripple effect (no pun intended) may spur a new wave of applications and innovation in crypto-based financial instruments.
Legal Considerations and XRP’s Regulatory Past
It’s important to contextualize this development within XRP’s turbulent regulatory history. Ripple Labs, the company behind XRP, was locked in a lengthy legal battle with the SEC that began in 2020 over allegations of unregistered securities sales. While a partial legal victory in 2023 declared that XRP is not a security when sold on exchanges, some uncertainty remains.
This background makes the SEC's consideration of an XRP ETF even more notable. It indicates a degree of regulatory thawing and a willingness to move beyond past conflicts in favor of innovation and investor access.
The Road Ahead
While the review itself is a milestone, the path to ETF approval remains complex and politically charged. Investor protection, market stability, and regulatory consistency remain top concerns for the SEC. However, the crypto community remains hopeful that the approval of this fund will mark a turning point for broader adoption and market maturation.
As public comments pour in and institutional voices weigh their support, all eyes remain on the SEC’s decision. If approved, the WisdomTree XRP Trust could not only elevate XRP’s position in the digital asset hierarchy but also accelerate the integration of cryptocurrencies into the global financial system.
Conclusion
The SEC’s formal review of WisdomTree’s XRP ETF proposal is more than a procedural step—it is a signal that XRP is gaining traction in the eyes of traditional finance. Whether the ETF is approved or not, this move represents a pivotal shift in how digital assets are perceived, regulated, and ultimately accessed by investors. As the review process unfolds, it will serve as a litmus test for how far the bridge between crypto and conventional finance has truly come.
