WisdomTree Enters XRP ETF Race with Delaware Trust Filing
WisdomTree Funds, a well-known global asset management company that specializes in exchange-traded products, has taken a big step towards establishing an XRP ETF by filing to create a Delaware statutory trust entity. This move, made on November 25, shows WisdomTree’s aim to launch an investment product that will mirror the prices of Ripple’s native token. Normally, asset managers follow up the Delaware filing with an S-1 registration form submitted to the Securities and Exchange Commission (SEC) shortly after.
Just recently, WisdomTree introduced an XRP ETP in Europe, known as WisdomTree Physical XRP (XRPW), which can be found on key regional exchanges like Deutsche Börse Xetra, the Swiss Stock Exchange (SIX), and Euronext in Paris and Amsterdam. This new proposed XRP fund is part of WisdomTree’s strategy to broaden its cryptocurrency offerings, which already includes various physically backed crypto ETFs like the WisdomTree Bitcoin Fund (BTCW), attracting $217 million in net inflows since its launch.
It’s interesting to note that while many asset managers have pursued spot Ethereum ETFs after Bitcoin ETFs were launched, WisdomTree is focusing on an XRP ETF. The company is now joining Bitwise, Canary Capital, and 21Shares in the pursuit of an XRP ETF. Bitwise Asset Management was the first to file for an XRP ETF, followed by Canary Capital and 21Shares.
Aside from XRP ETFs, asset managers are also seeking SEC approval for ETFs that track the performance of other altcoins like Solana (SOL), Litecoin (LTC), and Hedera (HBAR). There’s a growing interest in deepening relationships with the cryptocurrency industry as well. For example, Bitwise recently announced support for staking STRK, the native token of Starknet, and will act as a validator for Starknet’s staking.
The XRP ETF developments are drawing attention, especially as the SEC-Ripple lawsuit remains ongoing. The legal status of XRP is still uncertain, with the SEC pushing for an appeal that challenges a court ruling stating XRP was not a security when sold on exchanges. However, the upcoming departure of SEC Chair Gary Gensler hints at a potential settlement in the case, leading to speculations on a new approach under new SEC leadership that could open doors for more investment products linked to various cryptocurrencies beyond Bitcoin and Ethereum.
Though XRP’s price initially saw a 7% increase following the WisdomTree filing news, it later dipped amidst a broad market downturn and is currently trading around $1.4, showing a 4% decrease in the last 24 hours.
As for the timeline on XRP ETF approval, according to Bloomberg ETF analyst James Seyffart, decisions on recently proposed cryptocurrency ETFs may not be made until late 2025 due to ongoing regulatory discussions in the U.S. The approval for altcoin ETFs faces challenges because many altcoins lack an association with regulated futures markets like Bitcoin and Ethereum.
The approval of these altcoin ETFs will hinge on addressing issues like market manipulation, custody, and compliance. While changes in SEC leadership in 2025 could influence the regulatory landscape, the approval timeline remains uncertain.
