WisdomTree Applies for XRP ETF Trust: What You Need to Know

w’s this for exciting news: WisdomTree, with over $113 billion in assets under its management, has taken the first steps to launch an XRP exchange-traded fund (ETF)! This ETF would track the price of XRP, the sixth-largest cryptocurrency, and the news comes amidst a growing trend of firms seeking to make it easier for U.S. investors to access digital assets.

Not only is WisdomTree making moves, but Bitwise and Canary Capital are also in the mix, vying for approval for their own XRP ETFs. This surge in interest reflects a broader shift towards diversified crypto ETF products, as Bitwise recently filed for a Solana ETF.

However, the path to an XRP ETF is not without its challenges. Ripple Labs, the company behind XRP, is entangled in a legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC alleges that Ripple sold XRP as an unregistered security, although a partial victory for Ripple in 2023 suggests otherwise. Despite this, the SEC has appealed the ruling, adding a layer of uncertainty to the approval process for an XRP ETF.

But amidst all this, Ripple’s CEO, Brad Garlinghouse, remains upbeat about the eventual approval of an XRP ETF, citing strong institutional demand for such investment products. The market seems to agree, with 21Shares recently applying for a spot XRP ETF, the 21Shares Core XRP Trust.

Nate Geraci, President of The ETF Store, sees the filing for an XRP ETF by Bitwise as a strategic move, emphasizing the industry’s anticipation of clearer regulations and wider adoption of digital assets.

So, while the road to an XRP ETF may be bumpy, the growing interest and optimism surrounding the project suggest that there’s a lot to look forward to in the world of crypto investments.