WisdomTree Files for XRP ETF with Delaware Trust
WisdomTree Funds, a major player in global asset management focusing on exchange-traded products, has taken a big step by filing to create a Delaware statutory trust entity for its proposed XRP ETF. This move, made on November 25, shows that WisdomTree is gearing up to launch an investment product that will follow the prices of Ripple’s native token.
Typically, after filing in Delaware, asset managers will submit an S-1 registration form to the Securities and Exchange Commission (SEC) a few days later. This move by WisdomTree follows the recent introduction of an XRP ETP in Europe. Known as WisdomTree Physical XRP (XRPW), this product is now available on key regional exchanges like Deutsche Börse Xetra, the Swiss Stock Exchange (SIX), and Euronext in Paris and Amsterdam.
This push into the world of XRP is part of WisdomTree’s broader strategy to expand its range of cryptocurrency offerings. In addition to the proposed XRP ETF, the company already offers various physically backed crypto ETFs, including the popular WisdomTree Bitcoin Fund (BTCW), which has seen $217 million in net inflows since its launch.
While many asset managers have pursued spot Ethereum ETFs following the launch of Bitcoin ETFs, WisdomTree has set its sights on an XRP ETF. This move puts WisdomTree in competition with other firms like Bitwise, Canary Capital, and 21Shares, all vying to launch their own XRP ETFs.
Beyond XRP, asset managers are looking to get the SEC’s approval for ETFs that track the performance of other altcoins such as Solana (SOL), Litecoin (LTC), and Hedera (HBAR). The crypto industry is closely watching these developments, especially with the ongoing SEC-Ripple lawsuit affecting XRP’s legal status.
These recent moves by asset managers come at a time of transition within the SEC, as Chair Gary Gensler is set to depart. There is speculation that a new SEC leadership could bring changes that may pave the way for more investment products tied to cryptocurrencies beyond Bitcoin and Ethereum.
While the regulatory landscape remains complex, there are hopes for potential approvals in the future. Bloomberg ETF analyst James Seyffart suggests that decisions on these cryptocurrency ETFs may not come until late 2025. Seyffart highlights the challenges faced by altcoin ETF applications due to the lack of regulated markets like those for Bitcoin and Ethereum.
The road to approval will depend on addressing key issues like market manipulation, custody, and compliance. Changes in SEC leadership in the future could impact the regulatory environment, but the timeline for approval remains uncertain.
Overall, the move by WisdomTree to pursue an XRP ETF underscores the growing interest in expanding investment opportunities in the crypto space. While the road ahead may have its challenges, the potential for new investment products linked to various cryptocurrencies is generating excitement in the industry.
