Next Step Towards Approval: Spot XRP ETF Now Under Official SEC Review as XRP Momentum Builds

The U.S. Securities and Exchange Commission (SEC) has officially initiated its review of the WisdomTree XRP Trust, a proposed spot ETF designed to provide investors with direct exposure to XRP. If approved, the fund would become the first U.S.-based spot XRP ETF, potentially paving the way for similar crypto investment vehicles.Trade Crypto on KrakenThe SEC published its notice on May 27, kicking off a 21-day public comment period and a 240-day review process. This period will allow stakeholders to provide feedback on whether the ETF adequately addresses concerns such as investor protection and the risks of market manipulation.Filed by the Cboe BZX Exchange, the WisdomTree XRP Trust aims to track the market price of XRP through the CME CF Ripple-Dollar Reference Rate. This structure offers investors the ability to gain exposure to XRP via traditional brokerage accounts, avoiding the complexities of self-custody and private keys.The proposal is already generating significant interest. Betting odds on Polymarket currently place the likelihood of SEC approval by the end of 2025 at 83%, up from 68% a month earlier. Image source: Polymarket.Bloomberg ETF analysts have also expressed optimism, pegging the approval chance at 85% following the leadership changes at the SEC under the Trump administration.Ripple’s Chief Legal Officer Stuart Alderoty recently submitted a letter to the SEC’s Crypto Task Force, reiterating the company’s stance that XRP should not be classified as a security. The letter responds to a query raised in Commissioner Hester Peirce’s “New Paradigm” speech and emphasizes the need for clearer regulatory definitions.”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, warning against the use of vague terms like “fully functional” or “decentralized.”Today, @Ripple submitted an additional letter to the SEC’s Crypto Task Force addressing a key question from Commissioner Peirce’s “New Paradigm” speech: When does a digital asset separate from an investment contract?

We appreciate the continued engagement with the Task Force.…Recent data from Messari underscores robust growth in the XRP Ledger ecosystem during Q1 2025. Daily active addresses surged 142% to 134,600, while new addresses jumped 210% year-over-year to 568,300. Average daily transactions rose to 2.04 million, marking a 13% quarter-over-quarter increase. Payment transactions saw a notable rebound, climbing 36% to 1.12 million.State of XRP Ledger Q1

Key Update: Ripple acquires global prime broker Hidden Road, positioning XRP Ledger for institutional adoption and expanded DeFi capabilities.

QoQ Metrics 📊
• Daily active addresses ⬆️ 142%
• Average daily CLOB volume ⬆️ 74%
• RLUSD market cap on XRPL… pic.twitter.com/miW3PtZz6zThe network also experienced a dramatic 969% increase in active nodes, coinciding with the March 31 testnet launch of the XRPL EVM Sidechain, which promises Ethereum compatibility. Mainnet deployment is expected in Q2 2025.In parallel, Ripple completed a $1.25 billion acquisition of prime brokerage firm Hidden Road on April 8, enhancing XRPL’s integration into institutional trading infrastructure. The deal also supports the growing footprint of Ripple’s USD-backed stablecoin, RLUSD, whose market cap soared 304% to $44.2 million in Q1.XRP’s institutional appeal gained further traction with the May 18 launch of XRP futures on the Chicago Mercantile Exchange. The debut saw over $19 million in notional volume on the first day, with contracts offered in both standard and micro formats. Hidden Road cleared the first block trade, continuing its post-acquisition involvement in the XRP ecosystem.Internationally, Ripple has secured key partnerships in the UAE with Zand Bank and Mamo, following its March licensing by the Dubai Financial Services Authority. These integrations aim to streamline cross-border payments using Ripple Payments, boosting the network’s global utility.According to CoinCodex’s algorithmic XRP price prediction, XRP is expected to maintain steady growth throughout Q3 2025, culminating in a significant price rally in Q4. The projected peak is $3.45, representing a 51% increase from its current trading level.Get Started on Kraken