WisdomTree, one of the first companies to issue a spot Bitcoin exchange-traded fund (ETF) in the United States in January, has filed to launch a spot ETF backed by XRP.
On Dec. 2, WisdomTree became the fourth company in the US to submit a Form S-1 filing for a spot XRP (XRP) ETF with the US Securities and Exchange Commission.
XRP ETF observation from Bloomberg ETF analyst Eric Balchunas. Source: Eric Balchunas/Eleanor Terret
WisdomTree’s new ETF, the WisdomTree XRP fund, aims to provide investors with exposure to the price of XRP through issuing shares that will be listed on the Cboe BZX Exchange.
Subject to approval by the SEC, the new fund will create and redeem shares using the cash-create method or in exchange for cash, with the in-kind model potentially coming with further approvals.
Coinbase affiliates to serve as prime execution agent and XRP custodian
According to the filing, the prime execution agent and XRP custodian are both affiliates of the US cryptocurrency exchange Coinbase Global.
“Coinbase serves as the XRP custodian and prime execution agent for several competing exchange-traded XRP products and, as such, plays a critical role in supporting the US spot XRP exchange-traded product ecosystem,” WisdomTree’s filing mentioned.
WisdomTree also relies on Coinbase for its WisdomTree Bitcoin Fund (BTCW), which began trading alongside nine other spot Bitcoin ETFs on Jan. 11.
Previous spot XRP ETF filings came from Bitwise, Canary Capital and 21Shares
In filing the S-1 for the spot XRP fund, WisdomTree joins three other ETF issuers, including crypto asset manager Bitwise, Canary Capital and 21Shares.
Bitwise was among the first firms to file for a spot XRP ETF in October, submitting a Form S-1 for its Bitwise XRP ETF on Oct. 2. Bitwise is also among the first spot Bitcoin ETF issuers, debuting its Bitwise Bitcoin ETF (BITB) in January.
Canary Capital subsequently followed in the steps of Bitwise, filing an S-1 for the Canary XRP ETF with the SEC on Oct. 9.
21Shares, a co-issuer of ARK 21Shares Bitcoin ETF (ARKB) with Cathie Wood’s ARK Invest, filed a Form S-1 for its Core XRP Trust on Nov. 1. The trust does not provide investors with direct exposure to XRP but offers an “opportunity to indirectly access the market.”
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