WisdomTree files for XRP ETF in Delaware

WisdomTree, a US-based asset management firm that oversees over $113 billion in assets, has registered trust in Delaware for a proposed XRP exchange-traded fund

The filing, titled “WisdomTree XRP Fund,” represents an early step toward launching the ETF but does not yet include a formal filing with the Securities and Exchange Commission. WisdomTree’s registration will likely be followed by an S-1 filing with the SEC, according to Eleanor Terrett.

ETFs allow investors to trade assets such as cryptocurrencies or stocks on exchanges without directly owning them. An XRP ETF would track the price of XRP (XRP), the sixth-largest cryptocurrency by market cap, giving institutional and individual investors easier access to the asset.

This move positions WisdomTree among many firms expanding their crypto ETF offerings beyond Bitcoin (BTC) and Ethereum (ETH). In October, Bitwise filed for an XRP ETF, while Canary Capital and others sought approval for asset-backed ETFs such as Solana (SOL), Litecoin (LTC), and HBAR (HBAR).

XRP and SEC: Who wins?

Regulatory uncertainty surrounding cryptocurrencies continues, and Ripple Labs, the company behind XRP, is engaged in a legal battle with the SEC over XRP’s classification as a security.

Both sides won a partial victory in the legal dispute: A judge ruled that Ripple’s institutional sales of XRP met securities criteria, but sales on exchanges and to the public did not.

This nuanced decision has implications for how cryptocurrencies are regulated, and the SEC is appealing aspects of the decision to clarify its jurisdiction over crypto markets.

However, speculation is mounting that there is a change in the SEC’s approach to crypto under new leadership. Current SEC Chairman Gary Gensler is reportedly planning to resign, raising hopes that the new chairman may adopt a more positive stance on crypto-related products.

If approved, the XRP ETF could pave the way for more diverse crypto investment options, reflecting the growing demand for digital assets despite ongoing regulatory challenges.