Wisdomtree, an asset manager with $113 billion in global assets under management, has submitted a registration statement to the U.S. Securities and Exchange Commission (SEC) to introduce a spot XRP exchange-traded fund (ETF). This proposed ETF intends to reflect the performance of XRP while accounting for operational costs.
The ETF, under the sponsorship of Wisdomtree Digital Commodity Services LLC, would trade on the Cboe BZX Exchange. Daily share values will be determined using a reference rate that aggregates trading data from prominent XRP platforms. The filing specifies that shares in the ETF will be created and redeemed in sizable blocks by authorized participants, using cash transactions exclusively unless regulatory consent for in-kind XRP dealings is secured.
This SEC filing comes after a prior registration in Delaware and follows the launch of the Wisdomtree Physical XRP (XRPW) on European markets. That initiative promoted the fund as a low-cost method for gaining XRP exposure.
XRP has experienced a remarkable surge, climbing over 400% last month. This rally has elevated XRP’s market capitalization to approximately $150 billion, surpassing tether (USDT) to become the third most valuable cryptocurrency. Investors attribute this growth to expectations of a more crypto-friendly regulatory environment under the incoming administration, especially with the anticipated departure of SEC Chairman Gary Gensler.
Additionally, speculation about Ripple’s potential initial public offering (IPO) and the launch of a new stablecoin, RLUSD, have further bolstered market confidence. These developments have collectively propelled XRP’s value to levels approaching its record highs. Chris Giancarlo, former Chair of the Commodity Futures Trading Commission (CFTC), has suggested that under new leadership, the SEC may dismiss the case against Ripple. Ripple also recently announced its plan to invest in the rebranded Bitwise Physical XRP exchange-traded product (ETP).
