WisdomTree files for XRP ETF with SEC, signaling growing institutional interest in crypto-backed funds.
SEC's Ripple legal battle and leadership changes could influence XRP ETF approvals and broader crypto adoption.
XRP ETFs gain momentum as WisdomTree joins major players in seeking SEC approval amid market optimism.
WisdomTree, an important fund manager with $113 billion under management, has filed a Form S-1 registration statement with the SEC. The filing includes plans for the WisdomTree XRP Fund, the company's first venture into XRP-based financial products.
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The fund's administrator, according to the December 2 filing, is Bank of New York Mellon. However, WisdomTree has not provided a ticker symbol for the proposed fund. The ETF will directly track the price of XRP, the third-largest cryptocurrency by market capitalization.
Joining the Race for XRP ETFs
WisdomTree joins Bitwise, 21Shares, and Canary Capital, which all filed for XRP ETFs earlier this year. XRP ETFs are gaining traction, indicating more institutional interest in the cryptocurrency market.
WisdomTree has previously introduced an XRP-based product in Europe, called WisdomTree Physical XRP (XRPW). This exchange-traded product is available on several major platforms, including Deutsche Börse Xetra, Swiss Exchange, and Euronext.
Legal Challenges Could Impact Launch
The continuing legal dispute between the SEC and Ripple Labs may cause delays in approving XRP ETFs. The SEC has appealed a court ruling that XRP sales to ordinary investors do not constitute securities transactions. Ripple has responded by filing a cross-appeal.
Despite these issues, optimism remains high owing to anticipated changes in SEC leadership. Gary Gensler, the current SEC head, is scheduled to step down in January. Industry insiders anticipate the new leadership could have a more crypto-friendly regulatory position.
Broader Market Implications
One significant step toward institutional cryptocurrency adoption is the possible approval of XRP ETFs. Recent market changes, such as Donald Trump's election victory, have boosted support for pro-crypto measures.
Ripple CEO Brad Garlinghouse is optimistic about XRP's future. He emphasized the possibility for the cryptocurrency market to benefit from discussions with the new administration.
WisdomTree's action reflects growing momentum in the XRP ecosystem, while the market awaits further regulatory clarification.
The post WisdomTree Joins XRP ETF Race with SEC Filing, Names BNY Mellon as Administrator appeared first on Crypto News Land.
