Asset management firm WisdomTree joined the list of companies seeking authorization to create and trade an exchange-traded fund (ETF) based on XRP, Ripple’s cryptocurrency, on Monday, November 25. The company officially registered its own ETF, called WisdomTree XRP Fund, in the state of Delaware.
According to Fox Business journalist Eleanor Terrett, the company has confirmed that the listing is legitimate.
WisdomTree, with over $100 billion in assets under management, adds significant weight to the financial interest in XRP, suggesting potential added value and trust for the cryptocurrency.
With this move, WisdomTree joins the three firms that had previously applied to launch their own XRP ETF. The first to do so were Canary Capital and Bitwise, followed by 21Shares, who also recently notified their intentions to issue this financial vehicle.
WisdomTree is no stranger to the world of ETFs; it already issues a bitcoin ETF that, according to data from SoSoValue, has a cumulative net worth of USD 217 million. This prior experience could be a positive factor in its application process.
All of these applications, including WisdomTree’s, are currently awaiting evaluation and approval by the U.S. Securities and Exchange Commission (SEC). This regulatory body, which has had a critical approach towards cryptocurrencies under the presidency of Gary Gensler , a former banker known for his regulatory persecution against the industry, is about to experience a change in its direction from January 2025, as Gensler confirmed that he would be leaving the agency.
The news of WisdomTree’s listing has had an immediate impact on the market. After the news was made public, the price of XRP experienced a 4% rebound, reaching almost $2 per coin. This increase reflects the market’s enthusiasm for the possibility of an XRP ETF, which could facilitate institutional investment and increase the cryptocurrency’s liquidity and accessibility.
The focus now shifts to the SEC's decisions and how the change in its leadership could affect the regulation of cryptocurrency-based financial products.
The entry of firms with as much influence and capital as WisdomTree into the XRP ETF market not only underlines the growing acceptance of cryptocurrencies in the traditional financial sphere, but could also be an indicator of future standardization and clearer regulation of these digital assets.
