WisdomTree, a leading exchange-traded fund (ETF) provider, has applied for a spot XRP ETF with the US Securities and Exchange Commission. This is just another bold move in the company’s quest to expand its bitcoin products. If approved, the ETF will enable investors to follow the price of XRP, the world’s third-largest cryptocurrency by market capitalization.
The Cboe BZX Exchange would list the proposed ETF, WisdomTree XRP Fund. The filing suggests that the Bank of New York Mellon will act as the fund’s administrator, despite the absence of precise details such as the ticker symbol. WisdomTree previously established a trust entity in Delaware to aid the ETF’s development.
WisdomTree’s filing places it with organizations such as Bitwise, Canary Capital, and 21Shares, all of whom have recently applied for XRP-based ETFs. Bitwise pioneered the way earlier this year with its own XRP fund application, indicating a rising interest in integrating cryptocurrency into traditional financial platforms.
However, the SEC has yet to approve any spot XRP ETFs, citing continuing legal challenges related to XRP’s regulatory classification. The SEC’s lawsuit against Ripple Labs, the firm behind XRP, has posed a significant challenge. Although a partial court ruling favoring Ripple offers some clarity, ongoing appeals of the case cast doubt on the future of XRP-focused financial products.
Despite these hurdles, the filing demonstrates the market’s growing desire for cryptocurrency ETFs. As investors seek diverse exposure to digital assets, companies such as WisdomTree are keen to match the demand by providing creative solutions. Industry analysts believe that prospective changes in SEC leadership could provide a more favorable atmosphere for these applications in the future.
WisdomTree’s recent action demonstrates its dedication to remaining at the forefront of cryptocurrency innovation. With the market growing swiftly, the approval of XRP ETFs might pave the way for a new wave of investment opportunities in the digital asset area.
