U.S.-Based Asset Management Giant Applies for XRP ETF
New York-based asset management giant WisdomTree has filed for an Exchange-Traded Fund (ETF) for XRP in Delaware. WisdomTree manages assets worth $113 billion. This preliminary application represents the first step towards seeking approval from the U.S. Securities and Exchange Commission (SEC) to expand WisdomTree's presence in the growing cryptocurrency market.
Increase in XRP ETF filings WisdomTree joins major firms like Bitwise, Canary Capital, 21Shares, and Grayscale in applying for XRP ETF approval. Despite these applications, the SEC has yet to approve any XRP ETF. The delay in approval came after Ripple's partial victory in a federal court in July 2023, which ruled that XRP is not a security in individual sales. However, the SEC filed for an appeal on October 2, 2024, with a decision expected in 2025. Following Donald Trump's victory in the 2024 presidential election, it is anticipated that the regulatory environment will become more favorable, and SEC Chairman Gary Gensler is expected to leave office in January 2025.
WisdomTree’s global crypto strategy While WisdomTree offers XRP and Ethereum ETPs in Europe based on spot prices, it aims to replicate this success in the U.S. with its Delaware filing. Renowned lawyer and XRP advocate John Deaton stated, “Like it or not, XRP is the most resilient crypto asset,” continuing to defend XRP. This comment indicates momentum in light of significant developments, such as the potential entry of XRP into the ETF space.
XRP has managed to survive in the competitive crypto world despite regulatory challenges, including its ongoing legal battle with the SEC. Deaton's remark especially highlights XRP's increasing institutional acceptance, signifying the mainstream adoption potential of ETF applications. The resilience of XRP, combined with growing market opportunities, solidifies its position as a key player in the blockchain-based financial ecosystem.
Market experts evaluate the XRP ETF application Bloomberg analyst James Seyffart noted that regulatory hurdles for altcoin ETFs are significant. He pointed out that altcoins lack the benefits associated with CME-regulated futures markets, emphasizing the need to address issues like market manipulation, custody, and compliance. These processes may lead to delayed approvals for altcoin ETF applications.
WisdomTree's XRP ETF application is being evaluated in light of these challenges, but potential changes in SEC leadership could expedite the approval process. The upcoming departure of current chairman Gary Gensler in January 2025 may influence approval timelines. It is stated that multi-asset index ETFs like Grayscale and Bitwise may face fewer issues due to their focus on BTC and ETH.