WisdomTree Files S-1 Application with SEC for Spot XRP ETF

WisdomTree Files S-1 Application with SEC for Spot XRP ETF

In a move that could significantly bolster the crypto ETF landscape, New York-based asset manager WisdomTree has officially filed a Form S-1 registration statement with the Securities and Exchange Commission (SEC) for the creation of a spot XRP exchange-traded fund (ETF). This filing marks a significant milestone as the firm aims to provide direct exposure to XRP, the third-largest cryptocurrency by market capitalization.


Details of the WisdomTree XRP Fund

According to the SEC filing, the proposed WisdomTree XRP Fund will list on the Cboe BZX Exchange, Inc., with the Bank of New York Mellon serving as its administrator, fund accountant, and transfer agent. The ETF aims to closely track the price movements of XRP while deducting expenses and liabilities associated with the trust’s operations.


As outlined in the filing, WisdomTree noted:


“The Trust’s investment objective is to gain exposure to the price of XRP, less expenses and liabilities of the Trust’s operations. In seeking to achieve its investment objective, the Trust will hold XRP and will value its Shares daily.”

Although the fund’s ticker symbol has not yet been revealed, the S-1 document explains that shares will be sold or redeemed in blocks of 5,000 shares based on the amount of XRP attributable to each share.


Strategic Moves and Industry Context

WisdomTree’s filing comes on the heels of its establishment of a trust entity in Delaware specifically for the proposed fund. This move occurred just a week before the formal submission of the S-1 form to the SEC.


To proceed with the ETF’s launch, WisdomTree will also need to file a 19b-4 Form and secure regulatory approval for both submissions. If approved, the XRP ETF could begin trading on national exchanges, providing investors with an alternative crypto asset beyond Bitcoin and Ethereum.


Ripple Labs’ SEC Legal Battle: A Potential Roadblock?

One of the primary uncertainties surrounding the approval of a spot XRP ETF lies in the ongoing legal battle between Ripple Labs, the developers of XRP, and the SEC. Since 2020, the SEC has accused Ripple Labs of conducting an unregistered securities offering through XRP. While Ripple has achieved partial victories in the legal proceedings, the broader regulatory environment remains challenging.


The Growing Competition in Crypto ETFs

WisdomTree is not the only player vying to bring a spot XRP ETF to market. Competitors such as Bitwise Asset Management and 21Shares have recently filed similar applications, signaling growing interest in diversifying the crypto ETF market beyond Bitcoin and Ethereum.


  • Bitwise filed its own S-1 for an XRP ETF on November 26, 2024, emphasizing its commitment to expanding crypto ETF offerings.
  • Earlier in November, 21Shares also entered the race by submitting its proposal for an XRP-focused fund.
  • Canary Capital, another notable player, has sought approval for ETFs based on cryptocurrencies such as Solana (SOL), Litecoin (LTC), and Hedera Hashgraph (HBAR).


The Broader Crypto ETF Landscape

Despite regulatory hurdles, the crypto ETF market is gaining momentum. In recent months, the approval of spot Bitcoin ETFs by major firms such as BlackRock and Fidelity has reignited optimism for similar products focused on other cryptocurrencies. However, skepticism remains regarding demand for crypto ETFs beyond Bitcoin, given the latter’s dominance and investor familiarity.


WisdomTree’s effort to launch an XRP ETF underscores the industry's recognition of XRP's potential as a major crypto asset. Its adoption in cross-border payments and institutional finance, coupled with its robust market capitalization, makes it a compelling candidate for mainstream financial products like ETFs.


Final Thoughts

If approved, the WisdomTree XRP Fund could pave the way for increased institutional adoption of XRP and other cryptocurrencies. However, the SEC’s decision will hinge not only on the technical and financial merits of the proposal but also on the broader regulatory environment and ongoing legal disputes involving Ripple Labs.


The competition among asset managers to launch innovative crypto ETFs signals a maturing market eager to cater to both retail and institutional investors. As the regulatory landscape evolves, the potential approval of XRP ETFs could mark another milestone in the journey toward mainstream crypto adoption.


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