WisdomTree Files for XRP ETF Trust Entity in Delaware
Asset manager WisdomTree has taken the preliminary step towards launching an exchange-traded fund (ETF) focused on XRP by filing for a trust entity in Delaware.
Expanding Institutional Access to Digital Assets
If approved, the XRP ETF would track the price of XRP, providing institutional investors with expanded access to digital assets. This filing is part of a broader trend of crypto-focused ETFs reshaping investment opportunities in the market.
- XRP reacted positively to the news, with a nearly 7% increase over the past 24 hours to $1.47.
- XRP has been a top-performing asset in the top 10 cryptocurrencies by market cap, retaining its recent gains despite a wider market dip.
Regulatory Challenges Ahead
XRP’s journey to becoming an ETF-backed asset faces significant legal and regulatory hurdles. Ripple Labs, the issuer of XRP, is currently engaged in a legal dispute with the US Securities and Exchange Commission (SEC) over allegations that XRP was sold as an unregistered security.
Ripple’s partial legal victory in 2023 has been overshadowed by the SEC’s appeal, maintaining regulatory uncertainty in the market.
Ripple CEO Brad Garlinghouse remains optimistic about XRP ETFs despite these challenges, citing strong demand from institutional investors.
Market Optimism Amid Regulatory Changes
The recent resignation of SEC chair Gary Gensler has raised optimism in the market that the new administration will address regulatory uncertainty that has hindered industry growth in the US.
Expanding Crypto ETF Landscape
WisdomTree, with $113 billion in assets under management, is joining other firms in seeking approval for XRP ETFs, such as Bitwise and Canary Capital.
WisdomTree’s filing is part of a growing list of crypto ETF proposals as the market diversifies, with other firms submitting applications for ETFs focused on different digital assets.
Analysts view these filings as a strategic move to meet institutional demand while awaiting clearer regulatory frameworks in the market.
Future Opportunities for Institutional Investors
As crypto gains traction in mainstream finance, ETFs provide a bridge for institutional investors to access digital assets. The launch of Bitcoin ETFs earlier this year marked a significant milestone, with substantial inflows indicating the appeal of these products.
While the approval of XRP ETFs depends on resolving Ripple’s legal challenges, firms like WisdomTree are positioning themselves for future opportunities in the evolving market.
