WisdomTree, a leading asset manager, has officially submitted a Form S-1 registration statement to the U.S. SEC for a spot XRP exchange-traded fund (ETF).
This move places WisdomTree among a growing number of asset managers aiming to capitalize on the rising popularity of XRP by launching investment products based on digital assets.
WisdomTree Files For Spot XRP ETF
According to the December 2 filing, the Bank of New York Mellon will serve as the administrator for the proposed trust. The ETF is designed to track the price of XRP, which has recently emerged as the third-largest cryptocurrency by market capitalization.
While the filing did not specify an exchange venue or ticker symbol for the ETF, it marks a critical step toward broadening institutional participation in the cryptocurrency market.
WisdomTree’s entry into the XRP ETF race comes on the heels of significant momentum for the digital asset. XRP recently surpassed Solana and Tether in market capitalization, reaching a valuation of over $136.41 billion on December 1. Trading at $2.37, XRP saw a 24% surge within 24 hours, solidifying its position as a key player in the crypto market.
The Growing Interest in Digital Assets
The filing also aligns with renewed investor interest in digital assets, buoyed by the expectation of a more crypto-friendly regulatory environment under the incoming Trump administration.
Market analysts predict that a shift in U.S. policy could accelerate the approval of cryptocurrency ETFs, including altcoin-focused products. Notably, WisdomTree joins Bitwise and Canary Capital, which have also filed for XRP ETFs, signalling growing institutional confidence in the asset.
Ripple’s leadership is also optimistic about XRP’s future. Ripple CEO Brad Garlinghouse has revealed ongoing discussions with the Republican administration, suggesting potential regulatory support for the cryptocurrency industry.
With SEC Chair Gary Gensler set to step down in January, experts anticipate a shift in the agency’s approach to digital assets, possibly paving the way for faster ETF approvals.
This development reflects broader trends in the cryptocurrency space. XRP’s rally, fueled by factors such as market sentiment, key partnerships, and the prospect of a favourable regulatory climate, underscores its growing importance. The successful launch of an XRP ETF would represent a major milestone, providing traditional investors with easier access to the digital asset.
As WisdomTree leads the charge, it is important to remember that last year WisdomTree’s AUM surpassed $100B and hence, this move could set the stage for a wave of altcoin ETFs, further cementing cryptocurrency’s role in mainstream financial markets.