WisdomTree, a U.S.-based asset management firm managing over $113 billion in assets, has taken a significant step toward launching an XRP exchange-traded fund (ETF) by registering a trust in Delaware. The filing, titled the “WisdomTree XRP Fund,” marks the beginning of the process but does not yet include a formal application to the Securities and Exchange Commission (SEC). Industry sources, including Eleanor Terrett, suggest that the next step will likely be a filing of an S-1 registration with the SEC.
ETFs allow investors to trade assets such as cryptocurrencies or stocks on exchanges without owning them directly. An XRP ETF would track the price of XRP, the sixth-largest cryptocurrency by market capitalization, offering both institutional and retail investors easier access to the asset. This move places WisdomTree alongside several other firms expanding their crypto ETF offerings beyond just Bitcoin and Ethereum. In October, Bitwise filed for an XRP ETF, while companies like Canary Capital have sought approval for ETFs based on cryptocurrencies such as Solana, Litecoin, and HBAR.
XRP’s Legal Battle with the SEC Continues
Amid the growing interest in crypto ETFs, the legal landscape for XRP remains clouded by uncertainty. Ripple Labs, the company behind XRP, continues its battle with the SEC over the classification of XRP as a security. The legal dispute has seen mixed results for both sides: a judge ruled that Ripple’s institutional sales of XRP met the criteria for securities, while sales on exchanges and to the public did not. This nuanced ruling is central to the broader debate over how cryptocurrencies should be regulated.
The SEC has appealed parts of this ruling in an effort to assert more control over the cryptocurrency market. However, speculation is mounting that the SEC’s approach to crypto may change under new leadership. Reports suggest that SEC Chair Gary Gensler is planning to resign, and many hope that his successor will adopt a more crypto-friendly stance.
If approved, the WisdomTree XRP ETF could be a key milestone in the evolution of crypto investment products, reflecting the growing demand for digital assets despite ongoing regulatory challenges.
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