The U.S. Securities and Exchange Commission has started a formal review of the WisdomTree XRP Trust. This is a proposed spot exchange-traded fund that would let investors gain exposure to XRP without directly owning the tokens. If approved, it would be the first spot XRP ETF in the U.S.
The application was filed by the Cboe BZX Exchange.
The product would track XRP’s market price using the CME CF Ripple-Dollar Reference Rate. This would allow investors to invest in XRP through regular brokerage accounts. They would not need private keys or to self-custody the tokens.
The SEC now has up to 240 days to approve or reject the filing. It is asking for public comments on whether the ETF’s design properly addresses concerns about market manipulation and protecting investors. Ripple’s Chief Legal Officer, Stuart Alderoty, sent a letter to the SEC’s crypto taskforce.
He emphasized that XRP should not be considered a security. Alderoty said there need to be clear regulatory guidelines. This would prevent market participants from being accidentally classified under vague regulatory terms.
“Rules must be clear not just for issuers, but for all market participants who could be unwittingly classified as securities exchanges, brokers, dealers, or issuers,” Alderoty wrote. He added that relying too much on terms like “fully functional” or “decentralized” creates more regulatory confusion than clarity. The industry will be closely watching the SEC’s decision on the WisdomTree XRP Trust.
It could set a precedent for future cryptocurrency-based investment products in the U.S. market. For years, XRP holders have hoped for regulatory clarity and mass adoption. The SEC lawsuit dragged on, but now that it is settling, the market wants more than just courtroom wins.
It wants catalysts, and fast. With Bitcoin ETFs already attracting billions and Ethereum ETFs on the horizon, XRP’s absence from the conversation is becoming noticeable. Once seen as the future of cross-border payments, XRP now finds itself racing against time.
Analysts warn that without ETF approval or serious institutional interest, XRP could lose key support levels and fall below $1. As of May 29, 2025, no spot XRP ETF has been approved in the US, though major players like Grayscale and Franklin Templeton have filings pending. The SEC’s approval of ProShares’ futures ETF and Brazil’s launch of a spot ETF have fueled optimism.
Polymarket gives an 85% chance of a US spot ETF approval by year-end.
Sec reviews WisdomTree’s XRP ETF proposal
Analysts estimate that a spot XRP ETF could trigger $5–$11.7 billion in inflows, pushing the token’s price as high as $22.20.
With the SEC lawsuit finally settled and Ripple’s growing partnerships in Asia, XRP’s fundamentals are solid. However, ETF approval remains the missing piece for institutional adoption. Without that green light, top holders are diversifying into newer assets like Remittix.
Bearish analysts warn that failure to hold support at $2.25 could send XRP tumbling to $1.30 or worse, especially if macro risks intensify or ETF decisions are delayed past Q3. While a collapse to sub-$1 is unlikely without a broader crypto crash, the pressure is mounting. Ripple Labs (XRP) has found support at $2.28, stalling below the $2.35 mark.
The token remains in consolidation following a breakout from a long-term descending triangle. Recent price action is driven by regulatory catalysts, including the SEC’s review of a proposed spot XRP ETF, and institutional speculation leading to the creation of a $121 million XRP-based treasury. VivoPower International PLC announced a $121 million private share placement to support an XRP-focused treasury strategy.
The round, led by Saudi Prince Abdulaziz bin Turki, saw the addition of former SBI Ripple Asia executive Adam Traidman as an advisor. Following the announcement, VivoPower shares surged over 25%. Other corporations are quietly exploring XRP allocations, with more than $120 million reportedly raised this month to fund enterprise-level XRP integrations in cross-border payments.
Open interest in XRP derivatives has climbed to $4.87 billion over the past 24 hours, driven by the launch of CME Group Inc.’s cash-settled XRP futures. The regulated CME CF XRP-Dollar Reference Rate has attracted both directional traders and corporations hedging exposure. XRP is currently trading above its 50-day moving average, with resistance in the $2.35–$2.40 range.
A clean break above this range could open a path to $3.40, while a decline below $2.30 might expose a downside toward $2.20. Trading volume has lightened, indicating many traders are staying on the sidelines, awaiting further regulatory clarity. On-chain data shows mild whale accumulation over the past 48 hours, while smaller wallets have reduced exposure amid broader market risk-off flows.
Social sentiment is split, with long-term holders focusing on ETF developments and short-term traders navigating market volatility. A flattening U.S. Treasury yield curve and a stronger dollar have weighed on crypto markets, including XRP. However, a successful ETF process could lead XRP to decouple from broader trends, responding more to its own adoption and regulatory signals.
While the SEC’s final decision on the ETF may not arrive until early 2026, strong institutional feedback during the public comment period could accelerate progress. Conversely, weak or negative responses could result in delays. As developments unfold, XRP continues to navigate regulatory landscapes with potential significant ramifications for its market performance and institutional adoption.