WisdomTree is making big moves by filing for a Delaware trust to launch an XRP ETF.
This comes as part of a growing trend among asset managers looking to step into the digital asset ETF space amid changing regulatory vibes.
XRP ETF soon?
WisdomTree’s filing is an important first step before they submit a formal application to the U.S. SEC.
If approved, this ETF would track the market performance of XRP, which is currently sitting pretty as the sixth-largest cryptocurrency by market cap.
With this filing, WisdomTree joins a growing list of asset managers eager to offer an XRP ETF.
Companies like Bitwise and Canary Capital have already jumped on the bandwagon, as Bitwise filed its application last month, while Canary Capital applied in October for a spot XRP ETF that would follow the asset’s price using a benchmark index from regulated exchanges.
WisdomTree wants to create an ETF that specifically tracks XRP’s market performance, giving it a unique angle.
Veteran player
WisdomTree is no small player, they manage over $113 billion in assets globally. They’ve confirmed that their filing is legit, but they’re keeping tight-lipped about where the ETF will be listed or what its ticker symbol will be.
One thing they did mention is that most of their XRP holdings will be kept in cold storage, which means extra security for investors, always a good thing!
There’s a hype and optimism surrounding XRP ETFs lately, especially with some recent shifts at the SEC.
The resignation of SEC Chairman Gary Gensler has sparked huge excitement in the market, contributing to a stunning 180% growth in XRP’s price this November. It’s now at its highest point in over three years.
Gensler’s exit could pave the way for a friendlier regulatory environment for cryptocurrencies, which might make it easier for XRP ETFs to get the green light.
Alts shine
Ripple Labs, the company behind XRP, has been vocal about needing clearer regulatory guidelines in the digital asset space.
CEO Brad Garlinghouse believes that an XRP ETF is just around the corner, especially with growing institutional interest in cryptocurrency.
XRP isn’t flying solo in its quest for ETF approval. The success of Bitcoin and Ethereum ETFs has inspired other firms to jump into the fray.
For example, VanEck and 21Shares have both filed for Solana ETFs, with the SEC expected to announce decisions on these applications by January 6, 2025.
WisdomTree’s move comes at a moment when regulatory uncertainty around digital assets seems to be shifting, hopefully to the business-friendly direction.
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