WisdomTree Files for XRP ETF with SEC Amid Regulatory Changes
WisdomTree has filed for a Delaware trust to launch an XRP ETF, marking a preliminary step before submitting a formal application to the U.S. Securities and Exchange Commission (SEC). This ETF aims to track the market performance of XRP, currently the sixth-largest cryptocurrency by market capitalization.
This initiative aligns WisdomTree with other asset managers, such as Bitwise and Canary Capital, who have submitted similar applications. Bitwise filed its application last month, while Canary Capital applied in October for a spot XRP ETF that would utilize a benchmark index from regulated exchanges. WisdomTree's ETF will focus specifically on tracking XRP's market performance.
WisdomTree, managing over $113 billion in assets, has confirmed the legitimacy of its filing but has not disclosed the exchange for the ETF listing or its ticker symbol. Most of its XRP holdings will be kept in cold storage for enhanced security.
Recent developments within the SEC have fueled optimism regarding XRP ETFs. The resignation of SEC Chairman Gary Gensler has contributed to a nearly 180% surge in XRP's price in November, reaching its highest level in over three years. Gensler's departure may lead to a more favorable regulatory environment for cryptocurrencies, potentially streamlining the approval process for XRP ETFs.
Ripple Labs, which develops XRP, advocates for clearer regulations in the digital asset sector. CEO Brad Garlinghouse is confident that an XRP ETF will eventually be established, especially given the rising institutional interest in the cryptocurrency.
Other digital assets are also pursuing ETF approvals. The success of Bitcoin and Ethereum ETFs has prompted firms like VanEck and 21Shares to file for Solana ETFs, with the SEC expected to decide on these applications by January 6, 2025.
WisdomTree's actions occur amid shifting regulatory uncertainty in the digital assets space, creating new opportunities for institutional investments in XRP.