WisdomTree, a prominent issuer of exchange-traded funds (ETFs) managing $113 billion in assets, has registered an entity in Delaware for a potential XRP-focused ETF.
The filing suggests that the company may soon submit an S-1 registration to the U.S. Securities and Exchange Commission (SEC), a step required for launching an exchange-traded fund.
Growing Interest in XRP-Based ETFs
This move follows similar filings by other firms, including Bitwise and Canary Capital, aiming to establish spot XRP ETFs. Bitwise’s filing explicitly stated that XRP is a decentralized digital asset, not a security, contesting the SEC’s previous stance. XRP is recorded on a decentralized ledger, a feature often highlighted by proponents in regulatory debates.
XRP recently experienced a significant price increase, reaching its highest level since May 2021. This was partly attributed to market optimism about potential regulatory changes and broader crypto market rallies.
WisdomTree’s Expanding Crypto Footprint
WisdomTree’s interest in XRP ETFs adds to its existing efforts in the cryptocurrency sector.
The company already offers a spot Bitcoin ETF, managing approximately $367 million in assets. Additionally, it gained approval earlier this year to list physically-backed Bitcoin and Ethereum exchange-traded products on the London Stock Exchange.
These initiatives demonstrate a growing trend among asset managers to incorporate cryptocurrencies into their portfolios as demand for regulated digital asset products increases.
Potential Impact on the Market
The introduction of XRP ETFs could offer institutional and retail investors an opportunity to invest in XRP without directly managing the cryptocurrency. This could also strengthen XRP’s position in financial markets as regulatory clarity improves.
