New York asset manager WisdomTree is the latest firm to file for an XRP exchange-traded fund (ETF), amid optimism over the asset's future that helped drive it late last week to a price not seen since 2021.
The paperwork filed with the state of Delaware is the first step in getting such a product approved. WisdomTree will have to make the filing with Wall Street’s top regulator the Securities and Exchange Commission (SEC) to get the process officially moving.
XRP is a digital coin created by the founders of fintech company Ripple. It’s the sixth-biggest digital asset by market cap and is used to move money across borders.
The asset has made headlines because the SEC has been involved in a lawsuit with Ripple since 2020, when it hit the firm with a $1.3 billion lawsuit. It alleged that Ripple and its founders sold unregistered securities in the form of XRP to raise money.
But Gary Gensler, the SEC’s current Chair, is due to step down in January, leading some industry observers to think that the regulator will be friendlier towards the digital asset industry following his departure. Under Gensler’s watch, it has sued a number of crypto companies—including Ripple.
And investor optimism is showing: WisdomTree’s filing comes as XRP soars in price. The asset hit a three-year high price on Friday of $1.60 per coin on news of the future SEC restructuring. It’s now trading for $1.46, according to CoinGecko, a 24-hour rise of over 3%. The coin is still 57% below its January 2018 all-time high of $3.40.
The SEC approved Bitcoin exchange-traded funds (ETFs) and their Ethereum counterparts this year. Both have experienced large inflows, but the Bitcoin products in particular have broken records, led by BlackRock's iShares fund.
WisdomTree is one of the asset managers who received the green light from the regulator for a Bitcoin ETF. It also has an Ethereum ETF that trades in Europe.
Now, along with other firms including 21Shares and Bitwise, it’s hoping to get approval for other crypto products in the U.S.
Edited by Andrew Hayward
