WisdomTree, a U.S.-based asset manager, took its first step toward launching an XRP-focused ETF by registering the "WisdomTree XRP Fund" in Delaware.
The Path to an XRP ETF
This Delaware registration marks the initial step but does not serve as a formal application to the SEC. Journalist Eleanor Terrett confirmed that WisdomTree is likely to file an S-1 application with the SEC in the coming months. Such an initiative would allow investors to gain exposure to XRP without needing to purchase or store it directly.
Ripple’s Legal Battle and Its Impact on ETFs
Ripple Labs has been engaged in a prolonged legal battle with the SEC, which argues that XRP qualifies as a security. While the court differentiated between institutional and retail sales of XRP, the SEC has appealed the ruling. The potential resignation of SEC Chair Gary Gensler could alter the regulator’s stance on crypto assets, including XRP.
WisdomTree's Growing Crypto Portfolio
WisdomTree has established itself as a key player in the crypto ETF market, launching Bitcoin and Ethereum ETFs in Europe. These products have seen significant investor interest. XRP recently surged to $1.60 per coin, but has settled at $1.45, representing a seven-day increase of over 30%.
Interest in XRP ETFs is growing amidst Ripple's legal disputes with the SEC and the potential for regulatory shifts.
