WisdomTree Files for XRP ETF with USDT Securities Commission
December 2, 2024
WisdomTree, a major asset management firm, has officially filed an application with the SEC for an exchange-traded fund (ETF) for spot XRP. The move makes WisdomTree the fourth U.S. firm to seek approval for such a fund.
The proposed ETF, called the Wisdom Tree XRP Fund, would offer investors exposure to XRP price performance through the issuance of shares listed on the Cboe BZX exchange.
SEC to Report on 4 XRP ETF Applications
If approved, the Wisdom Tree Fund will operate using a cash creation model to issue and redeem shares. Subject to additional approvals, an in-kind creation model may be introduced later.
The document states that Coinbase Global will be the lead executing agent and custodian of the fund’s XRP. Coinbase is already partnering with Wisdom Tree for a Bitcoin ETF – BTCW.
Popular crypto investor Miles Gregory wrote on X (formerly Twitter): "XRP holders aren't even euphoric. $2 is nothing. Wait until RLUSD stablecoin gains massive adoption > trillions. XRP is the bridge coin. No XRP ETF approved yet."
WisdomTree joins Bitwise, Canary Capital, and 21Shares in the race to introduce spot XRP ETFs in the United States. Bitwise led the charge by filing for the Bitwise XRP ETF on October 2. Canary Capital followed a week later with the Canary XRP ETF.
On November 1, 21Shares filed for the Core XRP Fund, which provides indirect exposure to XRP by allowing investors access to the market performance of the asset.
XRP Becomes Third Largest Cryptocurrency by Market Cap
The demand comes amidst a huge momentum in the XRP market. The altcoin’s price surged nearly 50% today, taking its monthly gain to over 400%. XRP now has a market cap of $153.5 billion, overtaking Solana and USDT to become the third-largest asset.
This bullish momentum began with the re-election of Donald Trump in November and the resignation of the current SEC chairman. Gensler has been a persistent critic of XRP and Ripple, leading to a lengthy legal battle that saw XRP trade below the $1 mark for over three years.
However, with Trump poised to overhaul the SEC, institutional interest in XRP has surged. That’s why major asset management firms like WisdomTree are moving early to file for an ETF as regulatory pressure continues to ease. As BeInCrypto reported last week, New York regulators are also preparing to approve Ripple’s stablecoin RLUSD. This could further increase the liquidity of XRP, which would impact its price. Overall, the SEC’s approval of an XRP ETF could cause the altcoin’s market price to react like Bitcoin has throughout this year and extend it significantly to an all-time high.