The U.S. Securities and Exchange Commission (SEC) has officially initiated proceedings to decide whether to approve the WisdomTree XRP Fund or not.
This move marks a significant step toward the potential launch of a spot XRP-based exchange-traded fund (ETF) in the United States. If approved, the fund would list on the Cboe BZX Exchange under the Commodity-Based Trust Shares rules.
For context, the Cboe BZX Exchange submitted a proposal to the SEC on February 6 to list and trade shares of the WisdomTree XRP Fund. The proposal was published in the Federal Register on February 26, opening a period for public comment.
Meanwhile, the filing has now entered a critical phase that brings it one step closer to approval.
SEC Opens Proceedings to Determine Approval
In a notice on May 27, the SEC stated it had formally begun proceedings to determine whether the proposed ETF meets the necessary legal and regulatory standards. This follows a prior decision on March 11, when the Commission extended the review period to allow more time for consideration.
Now, the SEC is specifically considering whether the proposal is consistent with Section 6(b)(5) of the Exchange Act, which requires that exchange rules prevent manipulative acts and fraud.
The Commission invites public comments on whether the proposal adequately addresses these concerns. Interested parties have 21 days from the date of the Federal Register publication to submit comments. A rebuttal period of 35 days is also provided for responses to other submissions.
Submissions could be via the SEC’s website or email, referencing file number SR-CboeBZX-2025-019.
Big News: SEC has formally initiated a review of the WisdomTree $XRP Trust. pic.twitter.com/g9aveHMlop
— TheCryptoBasic (@thecryptobasic) May 28, 2025
Fund Details: XRP-Backed, Cash-Settled Shares
According to the filing, the WisdomTree XRP Fund aims to track the performance of XRP, using the CME CF Ripple-Dollar Reference Rate. The fund’s assets will consist solely of cash, XRP, and cash equivalents.
Shares will be created and redeemed in blocks of 5,000 through cash transactions with authorized participants. Additionally, daily valuation will occur at 4:00 p.m. ET, in line with the pricing benchmark methodology. The fund will not directly allow in-kind XRP redemptions or creations.
Ultimately, the WisdomTree XRP Fund could become one of the first XRP ETFs in the U.S. to offer direct exposure to XRP, potentially boosting institutional interest in the asset.
Beyond WisdomTree, other issuers seeking to offer XRP ETFs include Bitwise, Grayscale, and Franklin Templeton.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
