WisdomTree, a prominent global asset manager, oversees around $113 billion in assets and has initiated the process to launch an XRP ETF. The firm recently filed for a trust entity in Delaware, which is a necessary precursor before submitting a formal application to the SEC.
This strategic move places WisdomTree among other asset managers seeking to enter the XRP ETF market. Notably, Bitwise filed for a similar product last month, and Canary Capital also applied to launch a spot XRP ETF in October, indicating a growing interest in XRP ETFs.
WisdomTree’s proposed ETF aims to track XRP’s market performance, setting it apart from Bitwise and Canary Capital's offerings. The fund uses cold storage for the majority of its XRP holdings to ensure the security of its investors.
While WisdomTree has yet to disclose an exchange listing or ticker symbol for the fund, the firm joins others in responding to positive market conditions for XRP. This includes XRP’s significant price surge and the recent resignation of SEC chair Gary Gensler.
Gensler's departure may lead to a shift in the SEC's approach to digital assets, potentially easing restrictions on XRP ETFs. Ripple Labs' ongoing legal challenges with the SEC highlight the necessity of regulatory clarity, which could improve with changing leadership at the SEC.
Ripple’s CEO, Brad Garlinghouse, has previously expressed optimism about XRP fund approval, viewing it as an inevitable advancement in the asset class. The interest in XRP ETFs follows the successful approval of Bitcoin and Ethereum ETFs. Additional filings, such as those by VanEck and 21Shares for Solana ETFs, reflect broader market trends towards digital asset ETFs.
