WisdomTree has taken a significant step towards launching an XRP ETF by filing for a Delaware trust. This filing is an important first step before submitting the formal application to the U.S. Securities and Exchange Commission (SEC). The proposed ETF would track the market performance of XRP, which is currently the sixth-largest cryptocurrency by market capitalization.
This move places WisdomTree among the growing number of asset managers seeking to offer an XRP ETF. Other companies, such as Bitwise and Canary Capital, have already filed similar applications. Bitwise filed its application last month, while Canary Capital applied in October to launch a spot XRP ETF that would track the asset’s price using a benchmark index from regulated exchanges. However, WisdomTree aims to create an ETF that tracks XRP's market performance, setting it apart from the others.
WisdomTree, a major global asset manager managing more than $113 billion in assets, has confirmed that its filing is legitimate. However, the company has not yet disclosed the exchange where the ETF will be listed or its ticker symbol. It has also stated that most of its XRP holdings will be stored in cold storage, ensuring greater security for investors.
There has been growing optimism about the approval of XRP ETFs due to the recent developments in the SEC. The news of SEC Chairman Gary Gensler's resignation has contributed to the rally in XRP’s price, with the token surging nearly 180% in November. This surge has taken XRP to its highest price in over three years. Gensler's departure could lead to a more favorable regulatory environment for cryptocurrencies, potentially easing the approval process for XRP ETFs.
Ripple Labs, the company behind XRP, has long advocated for clearer regulatory guidelines in the digital asset space. CEO Brad Garlinghouse has expressed confidence that an XRP ETF is inevitable, especially with the increasing interest in institutional adoption of the cryptocurrency.
XRP is not the only digital asset seeking ETF approval. The success of Bitcoin and Ethereum ETFs has encouraged other firms to follow suit. VanEck and 21Shares have both filed for Solana ETFs, with the SEC expected to make a decision on these applications by January 6, 2025.
This move by WisdomTree comes at a time when regulatory uncertainty surrounding digital assets may be shifting, opening new opportunities for institutional investments in XRP.
