WisdomTree Files S-1 Application for XRP Fund with US SEC
WisdomTree Digital Commodity Services LLC, a subsidiary of WisdomTree Investment Inc (NYSE: WT), has submitted an S-1 filing for the WisdomTree XRP Fund to the US Securities and Exchange Commission (SEC). The New York-based asset management firm, managing over $113 billion in assets, aims to list the fund on the Cboe BZX Exchange.
The SEC filing does not include a ticker for the XRP trust or the expected sponsor fee. WisdomTree is likely to update the filing to enhance approval chances.
The Bank of New York Mellon Corp. (NYSE: BK) will act as trustee, fund accountant, and transfer agent for the trust upon SEC approval.
A Growing Demand for XRP
The S-1 application follows the launch of the WisdomTree Physical XRP ETP, which provides secure access to the XRP market and is fully backed by XRP, allowing non-US institutional investors to participate.
Dovile Silenskyte, director of digital assets research at WisdomTree, stated that institutional adoption of XRP will significantly enhance crypto portfolios. XRP's market cap is lower than that of Ethereum and Bitcoin, potentially leading to greater profits due to declining returns from those assets.
Other fund managers, including 21Shares, Bitwise, Grayscale Investments, and Canary Capital, have also filed for an XRP ETF in the US market.
The rising demand for XRP coincides with the recent resignation announcement of SEC chair Gary Gensler. The change in SEC leadership could lead to the dropping of legal charges against Ripple Labs, positively impacting XRP.
Market Implications
The increasing demand for XRP among institutional investors has contributed to a bullish outlook. XRP, with a fully diluted valuation of approximately $241 billion, outperformed other altcoins, becoming the third largest cryptocurrency excluding stablecoins.
Technical analysis indicates that XRP's price is poised to exceed its all-time high from early 2018. The price has broken out of a macro triangular pattern, signaling the start of a new bull cycle. Additionally, both the weekly and monthly Relative Strength Indexes (RSI) have surpassed the 70 level, indicating strong bullish momentum.