WisdomTree Moves Forward with XRP ETF Registration in the US
- WisdomTree Registers Trust Entity for XRP ETF
- Institutional Interest in XRP ETFs Grows in the US
- Possible change in SEC leadership could favor approval of cryptocurrency ETFs
New York-based asset manager WisdomTree, with over $100 billion under its belt, management , took a significant step forward by registering a trust entity in Delaware to launch an XRP exchange-traded fund (ETF) on November 25. This move positions the company alongside others seeking to introduce XRP ETFs in the United States, such as Bitwise, Canary Capital and 21Shares.
🚨NEW: @WisdomTreeFunds officially files an S-1 with the @SECGov for on $ Xrp spot ETF.
WisdomTree joins @BitwiseInvest , @21Shares and @CanaryFunds in applying for a fund that tracks the daily price of $ Xrp . pic.twitter.com/fIWiUuFpeR
—Eleanor Terrett (@EleanorTerrett) December 2, 2024
WisdomTree’s proposed ETF aims to track the market performance of XRP, currently the sixth-largest cryptocurrency by market capitalization. While details about the listing exchange and ticker have not yet been disclosed, the initiative demonstrates the company’s intention to expand its offerings in the cryptocurrency market.
The filing comes at a pivotal time for XRP. Ripple Labs, the company behind the token, has been facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) since 2020, which alleges that XRP was sold as an unregistered security. However, impending changes in SEC leadership, with Chairman Gary Gensler expected to step down, could result in a more crypto-friendly stance, potentially making it easier to approve XRP ETFs.
In addition to WisdomTree, other companies are actively looking to launch XRP ETFs. Bitwise, for example, recently filed a similar product that uses cold storage for the majority of its XRP holdings to ensure investor safety. Canary Capital has also filed for a spot XRP ETF that would track the token’s price using a benchmark index sourced from regulated exchanges.
The growing interest in XRP ETFs reflects institutional demand for exposure to digital assets beyond Bitcoin and Ethereum. The approval of such ETFs could pave the way for greater institutional acceptance and investment in cryptocurrencies, diversifying the options available to investors. However, regulatory approval remains a crucial factor, especially considering the current legal challenges faced by Ripple Labs.
As the cryptocurrency market evolves, the introduction of XRP ETFs could play a significant role in integrating these assets into traditional financial markets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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