WisdomTree Seeks Approval for Spot XRP ETF with SEC

WisdomTree is the latest company to jump on the XRP exchange-traded fund (ETF) bandwagon, filing with the SEC to launch the WisdomTree XRP Fund on the Cboe BZX Exchange. This move marks the fourth company seeking approval for an XRP-based ETF in the U.S. The goal of the fund is to provide investors with exposure to the price of XRP through shares listed on the exchange.

As of now, the ETF will utilize a cash-create method for share creation and redemption, with the possibility of exploring an in-kind model in the future pending additional approvals. Coinbase affiliates will serve as the prime execution agent and XRP custodian for the fund, while The Bank of New York Mellon will handle administration.

This filing comes at a time when Ripple, the company behind XRP, is engaged in a legal battle with the SEC over the regulatory status of XRP. Speculation abounds that changes in SEC leadership could pave the way for easier approval of XRP-based products. This speculation has been fueled by XRP’s recent price surge, reaching its highest levels since 2021 in November.

WisdomTree is joining the ranks of other asset managers like Bitwise, Canary Capital, and 21Shares in filing for XRP ETFs. Bitwise led the charge in October, followed by filings from Canary Capital and 21Shares in subsequent weeks. While 21Shares offers indirect access to XRP through a trust, WisdomTree’s product aims to directly track XRP’s price.

Beyond ETFs, Ripple is gearing up to launch RLUSD, a stablecoin pegged to the U.S. dollar, which may soon receive approval from the New York Department of Financial Services. In Europe, Bitwise has rebranded its XRP product to the Bitwise Physical XRP ETP (GXRP) after acquiring the ETC Group earlier this year.

While the SEC’s stance on approving XRP ETFs remains uncertain, the growing interest in crypto assets and potential shifts in regulatory attitudes are creating opportunities for firms like WisdomTree. The outcome of Ripple’s legal battle with the SEC could also impact the future of XRP-based investment products.

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