WisdomTree files with the SEC to launch a spot XRP ETF on Cboe BZX Exchange.
XRP's legal status remains uncertain as the SEC's battle with Ripple continues.
XRP is now the third-largest cryptocurrency by market cap, behind Bitcoin and Ether.
WisdomTree, a prominent exchange-traded fund issuer, has taken steps to potentially launch a spot XRP ETF, submitting a filing to the U.S. Securities and Exchange Commission (SEC) on Monday.
If approved, the proposed WisdomTree XRP Fund would be listed on the Cboe BZX Exchange. Although the ETF’s ticker symbol has not been disclosed, the filing indicates that The Bank of New York Mellon would be the administrator.
The filing outlines the fund's investment objective, which is to provide exposure to the price of XRP, excluding operational expenses and liabilities.
WisdomTree’s filing follows similar efforts by other firms, such as Bitwise, 21Shares, and Canary Capital, which have also sought approval for spot XRP ETFs. Notably, the SEC has not yet approved any spot XRP ETF as it continues to examine the legal status of XRP.
The SEC’s ongoing legal dispute with Ripple has added complexity to the situation. Since 2020, the SEC has accused Ripple of raising $1.3 billion through the sale of XRP, classifying it as an unregistered security.
However, a ruling in 2023 by U.S. District Court Judge Analisa Torres stated that certain sales of XRP, particularly those in blind bid processes, did not violate securities laws.
The court did rule that other direct XRP sales to institutional investors were subject to securities regulations. Ripple faces ongoing challenges with the SEC, including appeals of various aspects of the case.
In its filing, WisdomTree emphasized the risks involved in launching the XRP fund, noting that the SEC could ultimately classify XRP as a security. The agency has previously indicated that the legal status of digital assets could evolve as new circumstances arise, adding another layer of uncertainty to the market.
XRP’s position in the crypto market has strengthened in recent months. As of December 2024, XRP is the third-largest cryptocurrency by market capitalization, following Bitcoin and Ether.
The potential launch of the WisdomTree XRP Fund highlights the growing interest in digital asset ETFs, despite regulatory hurdles and ongoing debates over the classification of digital tokens like XRP.
