WisdomTree, a US-based asset manager, has registered an XRP fund in Delaware, signaling its intent to create an ETF linked to XRP.
The Path to an XRP ETF
This Delaware registration is the first step toward creating an XRP ETF, although a formal SEC application has not yet been filed. Financial journalist Eleanor Terrett revealed that WisdomTree plans to submit an S-1 form to the SEC in the coming months. An XRP ETF would enable investors to gain exposure to the cryptocurrency without the need to purchase or store it directly.
Ripple’s Legal Battle and Its Impact on ETFs
Ripple Labs has been in a prolonged legal battle with the SEC, which claims XRP is a security. Although the court differentiated between institutional and retail sales of XRP, the SEC has appealed the ruling, leaving the matter unresolved. The potential resignation of SEC Chair Gary Gensler has spurred speculation about the future of XRP ETFs. A leadership shift could result in a more favorable stance toward crypto assets, including XRP.
WisdomTree's Growing Crypto Portfolio
WisdomTree has already established itself as a key player in the crypto ETF market. The firm was among those approved to launch Bitcoin ETFs and has introduced Ethereum ETFs in the European market. These products have garnered significant investor interest, with Bitcoin ETFs in particular breaking records for inflows. XRP recently reached $1.60 per coin, its highest level in three years following news of potential SEC restructuring, though the price has since stabilized at $1.45, marking an over 30% increase over the past seven days.
The initiatives towards an XRP ETF highlight the growing interest in cryptocurrencies, despite the legal challenges faced by Ripple. The future of these ETFs may hinge on changes in SEC leadership.
