- To create an XRP exchange-traded fund (ETF), WisdomTree Funds has submitting a filing in Delaware.
- According to the filing, the company plans to request approval from the U.S. Securities and Exchange Commission (SEC).
- The firm joins competitors such as Bitwise and 21Shares in the race to introduce an ETF centered around XRP.
WisdomTree is a New York-based asset management firm. The company has registered an XRP-focused exchange-traded fund (ETF) in Delaware. This preliminary filing signals the company’s intent to submit an official application to the U.S. SEC. This move is aiming to launch the first XRP-centric ETF.
Also, the move highlights WisdomTree’s expansion into the crypto market. The expansion becomes more visible as Ripple’s ongoing legal battle with the SEC for clearer regulations continues.
As interest in cryptocurrencies expands beyond Bitcoin, asset managers are increasingly eyeing XRP ETF as the next major player in the ETF space. The filing also indicates rising competition for XRP-based ETFs with other firms.
This includes Bitwise, Canary Capital, and 21Shares, having filed similar applications. However, they have yet to be approved by the SEC. Ripple’s partial legal win in July 2023 has boosted optimism within the market.
The filing is an initial step toward the XRP ETF launch. Additionally, WisdomTree is expected to soon file an S-1 registration statement with the SEC for formal approval. This move accelerates the race to be the first U.S.-approved XRP ETF.
“NEW: Global ETF provider @WisdomTreeFunds has registered in the state of Delaware for an $XRP ETF. I have confirmed with the company this is a legitimate filing.Wisdom Tree has over $100 billion in assets under management.”
— Eleanor Terrett (@EleanorTerrett) November 25, 2024
WisdomTree, which manages over $100 Billion in assets, has already launched a physical Ripple ETP in Europe. That underscored its growing interest in Ripple’s native token. Fox journalist Eleanor Terrett confirmed this update.
XRP Price Surge Bets Are Trending After The Announcement
In the wake of this XRP news, many are even more optimistic. Similarly, Many market analysts believe that if the XRP price surpasses the $1.50 mark, it could quickly rise to over $2.
Analyst Armando Pantoja made a more positive prediction. He speculated that XRP would hit $8 to $20.
5-wave $XRP move + favorable economics + political environment.
— Armando Pantoja (@_TallGuyTycoon) November 23, 2024
1. The absolute bottom locked in at $.50, but unlikely.
2. Holding +$1.50? 5th subwave is extending, $2+ is certain before significant pullback.
3. Then, clear path to $8.
Let's ride this $XRP rocket! 🚀 🚀 pic.twitter.com/13s7XIbQow
An expectation fueled the optimism around the XRP price. The expectation was that Ripple’s dispute with the U.S. SEC could be resolved in early 2025. That coincided with potential shifts in U.S. political leadership.
Speculation is that with SEC Chair Gary Gensler’s departure, the regulatory environment for XRP ETFs may become more favorable. Under new leadership, some believe the SEC could ease restrictions, paving the way for XRP ETFs to gain approval.
President-elect Donald Trump has added to the sense of optimism. He has promised to position the U.S. as a leader in cryptocurrency and blockchain.
Whales bought 50 MILLION $XRP tokens over the weekend, quietly positioning themselves for what’s next. They move in silence before the storm.
— Armando Pantoja (@_TallGuyTycoon) November 25, 2024
They definitely know something… #XRP pic.twitter.com/u7L4FX8fn9
Moreover, sentiment around the XRP price has also been bolstered by a report from analyst Armando. He highlighted that whales purchased $50 Million worth of XRP over the weekend. That signaled strong investor confidence.
WisdomTree’s Delaware filing serves as a marker of growing faith In XRP’s regulatory future
A federal judge previously ruled that XRP sales to retail investors did not qualify as securities. This directly contradicted the SEC’s long-standing position.
However, the SEC has not accepted this ruling and filed an official appeal in October 2024. That has delayed any potential resolution until 2025.
If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.
— Brad Garlinghouse (@bgarlinghouse) October 2, 2024
Somehow, they still haven't gotten the message: they lost on everything that… https://t.co/1hW7xVSL9b
The legal uncertainty surrounding XRP continues to cloud the approval of XRP ETF proposals. Still, firms like WisdomTree seem poised to bet on a favorable resolution.
Many believe that a positive outcome in Ripple’s case could accelerate the approval of other cryptocurrency ETFs. However, while Ripple’s partial legal victory has bolstered confidence, it hasn’t resolved the underlying regulatory challenges.
President-elect Trump is likely to bring significant changes to financial regulations. The analysts expect that SEC’s new leadership may focus more on fostering crypto growth than continuing litigation.
This shift could be crucial for the future of crypto-backed financial products. Ripple’s CEO expressed optimism about the growing demand for cryptocurrency ETFs. The success of Bitcoin ETFs serves as evidence of strong market interest.
WisdomTree’s filing in Delaware marked a growing confidence in XRP’s regulatory future. However, its success will depend on Ripple’s legal outcomes and the incoming administration’s priorities.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
