WisdomTree Files for XRP Spot ETF, Challenging Regulatory Landscape
WisdomTree has officially entered the cryptocurrency exchange-traded fund (ETF) arena by submitting a Form S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for a spot XRP ETF, becoming the fourth company to pursue such a product.
The proposed WisdomTree XRP Fund aims to provide investors with direct exposure to XRP’s price through shares listed on the Cboe BZX Exchange. The Bank of New York Mellon will serve as the fund’s administrator, while Coinbase Global affiliates will act as the prime execution agent and XRP custodian.
WisdomTree joins a growing list of asset managers seeking to launch XRP-based investment products, including Bitwise, Canary Capital, and 21Shares. This move follows the company’s previous success with its Bitcoin fund, which began trading in January alongside other spot Bitcoin ETFs.
The filing comes with a notable caveat: WisdomTree acknowledges the complex regulatory environment surrounding XRP. The registration statement warns investors about the potential classification of XRP as a security, highlighting the ongoing legal uncertainties in the cryptocurrency space.
The XRP ETF’s approval remains uncertain due to the longstanding legal battle between Ripple Labs and the SEC. Since 2020, the regulatory agency has accused Ripple of raising $1.3 billion through unregistered securities sales of XRP.
A potential shift in the regulatory landscape may be on the horizon. Industry analysts speculate that the expected resignation of SEC Chair Gary Gensler could create a more favorable environment for cryptocurrency-based financial products.
XRP currently stands as the world’s third-largest cryptocurrency by market capitalization, positioning the potential ETF as an attractive option for investors seeking crypto exposure. The filing coincides with increased institutional interest in cryptocurrency investment vehicles, particularly following the successful launch of spot Bitcoin ETFs earlier this year.
WisdomTree’s strategic move underscores the continuing evolution of cryptocurrency financial products, demonstrating the financial industry’s growing acceptance of digital assets as a legitimate investment class.
The company has previously established a trust entity in Delaware to support the fund’s creation, signaling a calculated approach to entering the XRP market. Investors and market watchers will now await the SEC’s response to this latest ETF proposal.
