WisdomTree, a major asset management firm, has officially filed with the SEC for a spot XRP exchange-traded fund (ETF). This move makes WisdomTree the fourth US firm seeking approval for such a fund.
The proposed ETF, called the WisdomTree XRP Fund, will offer investors exposure to XRP’s price performance by issuing shares listed on the Cboe BZX Exchange.
SEC to Decide on Four XRP ETF Applications
If approved, WisdomTree’s fund will operate using a cash-create model for share issuance and redemption. Subject to additional approvals, an in-kind creation model could be introduced later.
The filing outlines Coinbase Global as both the primary execution agent and the custodian of XRP for the fund. Coinbase already collaborates with WisdomTree for its Bitcoin ETF – BTCW.
“XRP holders aren’t even euphoric. $2 is nothing. Wait until the RLUSD stable coin gains massive adoption > trillions of dollars. XRP is the bridge currency. XRP ETF isn’t even approved yet,” crypto whale and popular investor Myles Gregory wrote on X (formerly Twitter).
WisdomTree joins Bitwise, Canary Capital, and 21Shares in the race to introduce spot XRP ETFs in the US. Bitwise led the charge with its filing for the Bitwise XRP ETF on October 2. Canary Capital followed a week later with its own filing for the Canary XRP ETF.
On November 1, 21Shares filed for its Core XRP Trust, which provides indirect exposure to XRP by allowing investors access to the asset’s market performance.
XRP Becomes the Third Largest Cryptocurrency by Market Cap
This filing comes amid XRP’s significant market momentum. The altcoin’s price surged by nearly 50% today, taking its monthly rally to over 400%. XRP now has a market cap of $153.5 billion, overtaking Solana and USDT to become the third largest asset.
This bullish momentum started with Donald Trump’s re-election in November and the resignation of the current SEC chair. Gensler has been a consistent critic of XRP and Ripple, leading to a lengthy legal battle that saw XRP trade below the $1 mark for more than three years.
However, with Trump set to overhaul the SEC, institutional interest in XRP has surged. This is why major asset management firms like WisdomTree are moving in early to file for an ETF as regulatory pressure continues to ease.
As BeInCrypto reported last week, New York regulators are also preparing to approve Ripple stablecoin RLUSD. This might increase XRP’s liquidity further, which would impact its price.
Overall, the SEC’s approval of a spot XRP ETF could see the altcoin’s market price react like Bitcoin did throughout this year and significantly extend its all-time high.
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