US-based asset management firm WisdomTree has filed a formal application to establish an XRP-based exchange-traded fund (ETF).
The application stated that the fund will operate under the name “WisdomTree XRP Fund” and will be traded on the Cboe BZX Exchange. The fact that XRP is currently the world’s third-largest cryptocurrency shows that this ETF application is an important step for the crypto market.
The primary objective of the WisdomTree XRP Fund is to provide a low-cost investment vehicle for investors seeking exposure to the XRP price. The fund will be valued daily to reflect the XRP price, and this valuation will be determined by an independent reference rate based on trading volumes on major XRP spot platforms.
The shares will only be bought and sold for cash, but direct trading with XRP is also possible if regulatory approval is received.
Financial firms authorized to purchase or redeem shares will not own XRP directly and will only conduct transactions in cash.
XRP has recently surpassed Tether in terms of market cap, coming in third place behind Bitcoin and Ethereum. This shows that XRP is becoming increasingly attractive to both individual and institutional investors.
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