In a bold move signaling confidence in the future of cryptocurrency, New York-based asset management firm WisdomTree Funds has registered in Delaware to establish an XRP exchange-traded fund (ETF). The registration, filed on November 25, is the initial step before a formal submission to the U.S. Securities and Exchange Commission (SEC), expected in the coming days.
This proposed WisdomTree XRP Fund would make the company one of several contenders racing to bring XRP-backed ETFs to the U.S. market, despite regulatory challenges.
WisdomTree Joins the XRP ETF Race Amid Regulatory Uncertainty
By launching its XRP-focused ETF initiative, WisdomTree aligns itself with industry leaders such as Bitwise, Canary Capital, and 21Shares, who have also submitted applications for XRP ETFs.
To date, however, none of these applications have received SEC approval. This reflects the broader challenges cryptocurrency ETFs face in navigating U.S. regulatory frameworks, particularly those involving assets like XRP.
Legal Hurdles and Ripple’s Ongoing SEC Battle
The road to an XRP ETF approval is clouded by Ripple Labs’ ongoing legal battle with the SEC.
- In July 2023, Ripple achieved a partial legal victory, with a court ruling that XRP is not a security in specific contexts.
- However, the SEC appealed the decision in October 2024, delaying further legal proceedings until January 2025.
Ripple CEO Brad Garlinghouse remains optimistic, highlighting the increasing demand for crypto-backed ETFs:
“Since Bitcoin ETFs launched earlier this year, billions have flowed into these funds, showcasing strong institutional appetite.”
A New Political Landscape and its Impact on Crypto ETFs
The potential approval of XRP ETFs comes amidst a shifting U.S. regulatory environment:
- Gary Gensler, the former SEC Chair, resigned following Donald Trump’s return to the presidency, raising hopes for more crypto-friendly policies.
- Industry analysts predict that conservative appointees in key financial regulatory positions could introduce pro-crypto oversight, benefiting products like XRP ETFs.
If Ripple secures a favorable outcome in its legal battle, coupled with leadership changes at the SEC, analysts foresee accelerated progress for XRP ETFs.
Crypto ETFs on the Rise: Solana, XRP, and Mainstream Adoption
WisdomTree’s entry into the XRP ETF market is part of a larger trend of growing interest in crypto-backed ETFs, driven by institutional demand and favorable political developments.
- XRP’s inclusion in ETF proposals mirrors the increasing institutional focus on altcoins like Solana and others, signaling a potential boom in crypto-backed investment products.
- Analysts believe Trump’s administration could deprioritize lawsuits like Ripple’s, paving the way for XRP ETFs to gain approval.
If regulatory attitudes shift and Ripple secures a legal win, the U.S. could soon see its first XRP ETF—unlocking new opportunities for investors and accelerating crypto adoption globally.
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