WisdomTree has officially filed for a spot XRP exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), becoming the fourth firm to do so, following Bitwise, 21Shares, and Canary Capital. This filing, submitted on December 2, 2024, is part of a broader trend as institutional interest in XRP grows amidst a significant surge in its market value, which recently surpassed $135 billion.
Key Details of the Filing
- Fund Name: WisdomTree XRP Fund
- Trading Venue: Shares will be listed on the Cboe BZX Exchange.
- Structure: The ETF will utilize a cash-create method for share creation and redemption, with the potential to adopt an in-kind model pending further approvals.
- Custodianship: Coinbase affiliates will act as the prime execution agent and custodian for XRP, a role they also fulfill for several other competing XRP ETFs.
Context and Market Impact
The filing comes when XRP’s price has surged significantly, increasing by approximately 430% over the past month. This rise has positioned XRP as the third-largest cryptocurrency by market capitalization, overtaking Tether (USDT) in recent weeks. Analysts suggest that changes in SEC leadership could facilitate the approval process for such ETFs, especially given the ongoing legal battles involving Ripple Labs and the SEC concerning XRP’s regulatory status.
Regulatory Landscape
The SEC’s stance on approving crypto-related products remains uncertain. However, with President-elect Donald Trump’s recent victory and his administration’s potential shift towards more favorable cryptocurrency regulations, there is growing optimism among asset managers like WisdomTree regarding the future of crypto ETFs.
The resignation of SEC Chair Gary Gensler is also seen as a pivotal factor that could influence the approval timeline for these products.
In summary, WisdomTree’s move to file for a spot XRP ETF reflects both the rising interest in cryptocurrencies as investment vehicles and the evolving regulatory landscape that could impact their viability in traditional financial markets
