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WisdomTree Funds, an asset management company based in New York, has officially registered in Delaware to establish an XRP exchange-traded fund (ETF) on November 25, signifying its initial move toward submitting a proposal to the U.S. Securities and Exchange Commission (SEC).
This initial action lays the groundwork for a possible filing with the SEC in the near future.
WisdomTree Enters the XRP ETF Competition: Will Regulatory Challenges Impede Progress?
The “WisdomTree XRP Fund” represents the firm’s foray into the expanding competition for XRP-centric ETFs.
NEW: Global ETF provider @WisdomTreeFunds has registered in the state of Delaware for an $XRP ETF. I have confirmed with the company this is a legitimate filing.
Wisdom Tree has over $100 billion in assets under management. pic.twitter.com/BXutcLIW3x— Eleanor Terrett (@EleanorTerrett) November 25, 2024
This filing places WisdomTree in line with early XRP ETF contenders such as Bitwise, Canary Capital, and 21Shares.
However, as of now, no XRP ETF applications have received approval from the SEC.
Observers predict that the firm will soon follow this filing with an S-1 registration statement to the SEC.
Despite this encouraging development, XRP’s journey toward becoming an ETF-supported asset is obscured by legal and regulatory uncertainties.
Ripple Labs, the entity behind XRP, is still engaged in a legal struggle with the U.S. Securities and Exchange Commission (SEC).
In July 2023, Ripple achieved a partial victory in its legal confrontation with the SEC, with a court ruling determining that XRP was not classified as a security in specific contexts.
Nevertheless, the SEC contested this decision in October 2024, with further proceedings postponed until January 2025.
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Ripple CEO Brad Garlinghouse remains optimistic, emphasizing the substantial demand for cryptocurrency ETFs.
“Since Bitcoin ETFs launched earlier this year, billions have flowed into these funds, highlighting institutional appetite,” he remarked.
Recent shifts in the U.S. political landscape, including the resignation of SEC Chair Gary Gensler following Donald Trump’s return to the presidency, have sparked optimism for more favorable regulatory measures.
Analysts anticipate that a new, crypto-friendly SEC leadership may facilitate the approval of products like XRP ETFs.
Industry observers expect that the incoming administration could prioritize a pro-crypto agenda, which may involve sanctioning crypto ETFs.
While the SEC has yet to approve any XRP ETFs, the increase in filings suggests rising confidence among asset managers.
Solana, XRP, and the ETF Surge: Are Crypto-Backed Funds Poised for Mainstream Acceptance?
WisdomTree’s decision arises amidst a surge of interest in cryptocurrency ETFs, driven by recent political and regulatory changes.
The outcome of Ripple’s legal proceedings is expected to significantly impact the SEC’s perspective on XRP ETFs.
With conservative appointees likely to occupy key financial regulatory roles, including the SEC, analysts foresee a possible transformation in oversight policies.
Furthermore, Trump’s administration could dismiss or deprioritize legal actions against companies like Ripple, potentially hastening the approval process for XRP ETFs.
If Ripple achieves a favorable resolution in its legal disputes and regulatory attitudes shift under new leadership, the U.S. market might witness its inaugural XRP ETF.
The post Global ETF Provider WisdomTree Files for XRP ETF in Delaware appeared first on Cryptonews.
