The US Securities and Exchange Commission (SEC) is soliciting public input on a proposal for an exchange-traded fund (ETF) tied to XRP.
In a filing posted on Wednesday, the SEC acknowledged a proposal from Cboe BZX Exchange, Inc. to list and trade shares of the WisdomTree XRP Fund.
The agency has invited public comments for the next 21 days.
Following the comment period, the SEC will decide whether to approve, reject, or “institute proceedings” to further evaluate the application.
The buzz around XRP ETFs has helped the XRP price surge over 6% to $2.67.
A sea of XRP ETFs
The SEC has recently acknowledged multiple XRP ETF proposals from firms including Bitwise, CoinShares, and Grayscale.
The SEC accepted 21Shares’ application on Feb. 14, followed by Bitwise’s filing on Feb. 18. CoinShares proposal was acknowledged earlier today.
Bloomberg ETF experts James Seyffart and Eric Balchunas estimate a 65% approval chance, while the prediction market Polymarket puts it at 78% by the end of 2025.
The SEC’s approach to XRP has evolved since its legal battle with Ripple Labs.
In August 2024, a federal judge ruled that XRP itself is not a security but may be classified as one under certain conditions.
The SEC’s latest filing refers to XRP as a commodity, aligning it with Bitcoin and Ethereum.
Bitwise’s application notes that it has no direct ties to Ripple Labs and argues that XRP does not meet the criteria for being considered a security.
Interest in XRP-based ETFs has surged alongside applications for funds tied to Solana, Dogecoin, and other digital assets.
Earlier in January, JPMorgan analysts estimated that the launch of SOL and XRP ETFs could collectively bring in up to $14 billion in investments.
Solana could attract $3-6 billion in new assets, while XRP might draw $4-8 billion, according to the report.
The development comes amid a new Trump administration, which is perceived as more crypto-friendly than its predecessor.
The SEC itself has undergone significant change, with the departure of former Chair Gary Gensler, who had been a vocal skeptic of cryptocurrencies, classifying most of them as securities.
Brazil approves XRP ETF
This development comes on the heels of Brazil’s Securities and Exchange Commission (CVM) giving the green light to Hashdex to launch the world’s first XRP spot Exchange-Traded Fund (ETF) named the HASHDEX NASDAQ XRP INDEX FUND.
The CVM has approved the listing of the XRP ETF on the B3 stock exchange, Brazil’s leading securities, commodities, and futures exchange.
The ETF is reportedly in the “pre-operational phase,” with Genial Investimentos appointed as the fund’s administrator.
Silvio Pegado, Ripple’s managing director for Latin America, highlighted the significance of the CVM’s approval, citing the growing demand and utility of XRP among institutional investors.
“It’s about time the first spot XRP ETF hit the market,” Pegado said, emphasizing XRP’s real-world applications and its potential for deeper integration into traditional finance structures.
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