Regulatory Changes: XRP ETF on the Brink of Approval

WisdomTree, an international investment firm known for its wide range of exchange-traded funds (ETFs), has taken a step toward digital assets by filing an application in Delaware to create an XRP ETF. According to Fox Business, the application has been approved by the company, which indicates WisdomTree’s growing interest in cryptocurrencies. The company currently manages about $113 billion in assets.

The move follows the launch of WisdomTree Physical XRP (XRPW), which is already listed on major European exchanges such as Deutsche Börse Xetra, Six Swiss Exchange, and Euronext in Paris and Amsterdam. XRPW is positioned as the most accessible XRP investment solution in the European market, offering investors a simple and secure way to track the asset’s price movements.

Regulatory situation in the USA

The cryptocurrency industry in the United States faces tough regulation. In December 2020, the U.S. Securities and Exchange Commission (SEC) accused Ripple Labs of selling XRP as an unregistered security. However, in July 2023, Judge Analisa Torres ruled that XRP sold on public exchanges is not a security, a major victory for Ripple. Despite this, the SEC filed an appeal in October, seeking to regain its footing in regulating digital assets.

The crypto industry’s outlook could change with the departure of SEC Chairman Gary Gensler, who plans to step down in January 2025. This coincides with the inauguration of President-elect Donald Trump, who has promised reforms to cryptocurrencies. Among his initiatives are the creation of a national Bitcoin reserve and the formation of a cryptocurrency advisory board, which could soften current policies.

Potential for XRP ETF Approval

After filing in Delaware, the next step involves obtaining regulatory approval from the SEC, which is necessary for the ETF to be legally launched and operational. Ripple CEO Brad Garlinghouse expressed confidence that the XRP ETF will be approved, citing the high demand for crypto investment products. He noted the growing integration of digital assets into traditional financial structures, despite the remaining barriers.

The approval of the XRP ETF would be a significant step for the crypto industry, strengthening its position in the global economy and providing investors with new opportunities to diversify their portfolios.