WisdomTree, a prominent U.S.-based asset manager overseeing more than $113 billion, has taken its first step towards launching an XRP-focused ETF.
The Path to an XRP ETF
This Delaware registration marks the initial step but does not yet represent a formal application to the SEC. Financial journalist Eleanor Terrett revealed that WisdomTree is likely to follow this move with an S-1 filing to the SEC in the coming months. Launching an ETF 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. 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 raised speculation about the future of XRP ETFs, as his departure could bring a shift in leadership with a more favorable stance toward crypto assets like XRP.
WisdomTree's Growing Crypto Portfolio
WisdomTree has already established itself as a key player in the crypto market, having launched Bitcoin and Ethereum ETFs in Europe. These products have attracted significant investor interest. Following news of potential SEC restructuring, XRP surged but later settled at $1.45, representing a seven-day increase of over 30%.
WisdomTree's ambition to expand its range of cryptocurrency products underscores the growing interest in crypto-focused ETFs, despite ongoing regulatory challenges.
