Global ETF Provider WisdomTree Files for XRP ETF in Delaware

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Hassan Shittu

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Hassan Shittu

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November 24, 2024

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WisdomTree Funds, a New York-based asset management firm, registered in Delaware to create an XRP exchange-traded funds (ETF) on November 25, marking its first step toward filing with the U.S. Securities and Exchange Commission (SEC).

This preliminary move sets the stage for a potential filing with the SEC in the coming days.

WisdomTree Joins the XRP ETF Race: Will Regulatory Hurdles Hold Them Back?

The “WisdomTree XRP Fund” product marks the firm’s entry into the growing race for XRP-focused ETFs.

The filing positions WisdomTree alongside early XRP ETF applicants such as Bitwise, Canary Capital, and 21Shares.

To date, however, no applications for XRP ETFs have received SEC approval.

Observers suggest the firm will follow this filing with an S-1 registration statement with the SEC shortly.

Despite the promising development, XRP’s path to becoming an ETF-backed asset is clouded by legal and regulatory uncertainties.

Ripple Labs, the company behind XRP, is still battling the U.S. Securities and Exchange Commission (SEC) in a legal drag.

In July 2023, Ripple partially won its legal battle against the SEC, with a court ruling that XRP was not a security in certain contexts.

However, the SEC appealed the decision in October 2024, with further proceedings delayed until January 2025.

Ripple CEO Brad Garlinghouse continues to be optimistic, noting the strong demand for crypto ETFs.

“Since Bitcoin ETFs launched earlier this year, billions have flowed into these funds, highlighting institutional appetite,” he said.

Recent changes in the U.S. political climate, including the resignation of SEC Chair Gary Gensler following Donald Trump’s return to the presidency, have fueled hopes for more favorable regulatory policies.

Analysts predict a new, crypto-friendly SEC leadership may ease the path for products like XRP ETFs.

Industry commentators anticipate that the incoming administration could prioritize a pro-crypto stance, including approving crypto ETFs.

While the SEC has not approved any XRP ETFs, the increased filings indicate growing confidence among asset managers.

Solana, XRP, and the ETF Boom: Are Crypto-Backed Funds About to Go Mainstream?

WisdomTree’s decision comes amid heightened interest in cryptocurrency ETFs, spurred by recent political and regulatory developments.

The outcome of Ripple’s legal battle will likely influence the SEC’s stance on XRP ETFs.

With conservative appointees expected to take over key financial regulatory positions, including the SEC, analysts predict a potential shift in oversight policies.

Additionally, Trump’s administration could dismiss or deprioritize lawsuits against firms like Ripple, potentially accelerating approval for XRP ETFs.

If Ripple secures a favorable outcome in its legal battle and regulatory attitudes soften under new leadership, the U.S. market could see its first XRP ETF.