WisdomTree becomes the latest asset manager to submit an S-1 application to the U.S. SEC for an XRP ETF.
The company submitted the application today, indicating that the fund, dubbed WisdomTree XRP Fund, would grant investors exposure to XRP.
The development comes days after the company submitted a preliminary filing in the State of Delaware, seeking to launch an exchange-traded product tied to XRP. The company has taken another major step as it officially seeks the SEC’s blessings for the XRP ETF.
WisdomTree Funds files for an XRP spot ETF.
Wisdom Tree joins Bitwise Invest, 21 Shares and Canary Funds in XRP Spot ETF Race.pic.twitter.com/PshSUG2hn1
— TheCryptoBasic (@thecryptobasic) December 2, 2024
WisdomTree XRP ETF Application
According to the filing, the WisdomTree XRP ETF shares will be listed and traded on the Cboe BZX Exchange under an undisclosed ticker. While WisdomTree Digital Commodity Service will serve as the trust’s sponsor, New York’s oldest bank, BNY Mellon, is the fund’s administrator.
The system will derive the value of the shares daily using an independent reference rate that sources its rate from XRP’s spot prices on major trading platforms.
Additionally, WisdomTree will redeem or create the trust’s shares in blocks of 5,000 Shares in exchange for cash. Currently, WisdomTree has yet to specify certain details, such as the reference rate, ticker, and price of each share.
Top Asset Managers Seeking to Launch XRP ETFs
For context, WisdomTree’s filing marks the fourth application the SEC has received for an ETF exclusively tied to XRP. Prior to this filing, top asset managers like Bitwise, 21Shares, and Canary Capital had submitted similar applications for XRP.
Additionally, leading asset managers such as Grayscale Investments and Bitwise are also seeking to convert their multi-coin funds, which contain cryptos like XRP, to spot exchange-traded products (ETPs).
While the SEC has acknowledged the applications for the XRP-related basket ETPs, the regulator has yet to comment on filings exclusively on XRP.
Potential Settlement of SEC v. Ripple Lawsuit
These asset managers seek to launch different investment products around XRP despite the token’s involvement in the SEC v. Ripple lawsuit, which is currently in the Court of Appeals for the Second Circuit.
The appeal, which will fully commence in January 2025, will see the parties challenge a federal court ruling regarding Ripple’s past XRP sales.
While the SEC seeks to overturn the decisions on Ripple’s programmatic sales and other distributions of XRP, the company challenged the institutional sales ruling, which was deemed investment contracts. Before the U.S. election, several legal analysts, including Fred Rispoli, projected that the Second Circuit would issue its verdict in 2026.
However, following Donald Trump’s emergence as U.S. President-elect, there are speculations that his administration would pave the way for favorable regulations, potentially leading to the resolution of the lawsuit. This speculation gained momentum after Gary Gensler announced plans to resign as SEC Chair on January 20, 2025.
Consequently, XRP has skyrocketed tremendously as more rumors about a potential settlement of the lawsuit emerge.
Specifically, the price of XRP spiked over 300% in one month, hitting a six-year high of $2.49 today. XRP also reclaimed the third position after its market cap overtook that of Solana (SOL) and Tether (USDT).
At press time, XRP trades at $2.4, ranking as the third-biggest cryptocurrency, with a market cap of $136.6 billion.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
