WisdomTree Files to Launch XRP-Based ETF in the United States

The proposed ETF aims to track the price of XRP, the native cryptocurrency of the Ripple network, which recently became the third-largest digital asset

Asset manager WisdomTree has filed with the U.S. Securities and Exchange Commission (SEC) to launch a new exchange-traded fund (ETF) that will track the price of XRP (XRP).

The filing, which was made on Friday, also states that the proposed ETF will be overseen by the Bank of New York Mellon, which will serve as the administrator for the XRP trust. Additionally, the filing notes that the specific ticker symbol for the fund has yet to be determined.

This latest move by WisdomTree marks a significant development in the efforts to introduce XRP-based investment products in the United States. Earlier this year, several other companies, including Bitwise, 21Shares, and Canary Capital, had filed for similar ETFs that would track the price of XRP.

However, it is important to note that these filings come amidst the ongoing legal proceedings between Ripple Labs, the company behind XRP, and the SEC over the regulatory status of the cryptocurrency.

In October, the SEC filed an appeal against a court ruling that had determined that XRP sales on secondary markets to retail investors are not classified as securities transactions. In response, Ripple Labs filed a cross-appeal.

Despite these legal challenges, there is optimism among some in the cryptocurrency community that upcoming changes in SEC leadership could lead to a more favorable regulatory environment for cryptocurrency-based financial products, which may potentially ease the path for XRP ETFs.

In Europe, WisdomTree has already launched the WisdomTree Physical XRP ETP (XRPW), which trades on several exchanges, including Deutsche Börse Xetra, SIX, and Euronext in Paris and Amsterdam. This product is fully backed by XRP and employs a dual custody model with cold storage to enhance security.

XRP has seen a remarkable surge in value recently, rising by 433% over the last 30 days, according to data from BNC XRPLX. The cryptocurrency is currently ranked third in terms of market capitalization.

The introduction of an XRP-focused ETF in the U.S. could further boost institutional investment and mainstream adoption of the cryptocurrency, especially considering its recent price performance and position as a leading digital asset.

However, the approval and success of such financial products ultimately hinge on regulatory developments and the resolution of existing legal disputes.