WisdomTree Eyes XRP ETF with Delaware Trust Filing

WisdomTree, a prominent U.S.-based asset management firm with over $113 billion in assets under management, has taken a significant step toward launching an XRP-focused exchange-traded fund (ETF). The company recently registered the “WisdomTree XRP Fund” trust in Delaware, marking an initial move toward making XRP more accessible to investors.

An Early Move Toward SEC Filing

While this trust registration represents progress, it does not yet constitute a formal ETF application with the U.S. Securities and Exchange Commission (SEC). According to financial journalist Eleanor Terrett, this filing is likely to be followed by an S-1 registration with the SEC—a crucial step in obtaining approval for the fund.

ETFs offer investors a streamlined way to gain exposure to assets like cryptocurrencies or stocks without directly owning them. If approved, the XRP ETF would track the price of XRP, currently the sixth-largest cryptocurrency by market capitalization. This would provide both institutional and retail investors with a simplified avenue for investing in XRP.

Growing Interest in Crypto ETFs Beyond Bitcoin and Ethereum

WisdomTree’s move underscores the increasing diversification within the crypto ETF market. In October, Bitwise Asset Management also filed for an XRP ETF, while firms like Canary Capital have pursued approvals for ETFs tied to other cryptocurrencies, including Solana, Litecoin, and Hedera.

By broadening their offerings beyond Bitcoin and Ethereum, asset managers aim to capitalize on the rising demand for a variety of digital assets.

Regulatory Hurdles: XRP vs. SEC

The XRP ETF initiative unfolds against the backdrop of Ripple Labs’ ongoing legal battle with the SEC over the classification of XRP as a security. This legal dispute has yielded mixed outcomes: while institutional sales of XRP were deemed securities, sales on public exchanges and to retail investors were not.

This partial resolution has profound implications for the regulatory framework governing cryptocurrencies. The SEC, however, has appealed certain aspects of the decision, seeking greater clarity over its jurisdiction in the crypto sector.

Amid these developments, speculation is mounting about potential changes in the SEC’s leadership. Current Chair Gary Gensler is rumored to be planning his resignation, sparking optimism that a new chair might adopt a more crypto-friendly approach.

A Milestone for Crypto Investments

If approved, the WisdomTree XRP ETF could set a precedent for more diverse crypto investment products, reflecting a growing appetite for digital assets despite persistent regulatory challenges. It would also highlight a broader shift in the market as asset managers explore innovative ways to meet investor demand while navigating a complex regulatory landscape.

This development underscores the evolving intersection of traditional finance and the cryptocurrency sector, with ETFs playing a pivotal role in bridging the gap.