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The proposed ETF aims to track the price of XRP, the native cryptocurrency of the Ripple network, which recently became the third-largest digital asset by market capitalization.
Source: X
According to the December 2 filing, the Bank of New York Mellon is designated as the administrator for the proposed trust. While the specific ticker symbol for the fund has not been disclosed, this move positions WisdomTree among a growing number of asset managers seeking to introduce XRP-based investment products in the United States. Earlier this year, firms such as Bitwise, 21Shares, and Canary Capital filed for similar XRP ETFs.
This filing comes amid ongoing legal proceedings between Ripple Labs and the SEC regarding XRP’s regulatory status. In October, the SEC appealed a court ruling that determined XRP sales on secondary markets to retail investors are not classified as securities transactions. Ripple Labs responded with a cross-appeal. Despite these legal challenges, there is optimism that upcoming changes in SEC leadership could lead to a more favorable regulatory environment for cryptocurrency-based financial products, potentially easing the path for XRP ETFs.
In Europe, WisdomTree has already launched the WisdomTree Physical XRP ETP (XRPW), which trades on exchanges such as Deutsche Börse Xetra, SIX, and Euronext in Paris and Amsterdam. This product is fully backed by XRP and employs a dual custody model with cold storage to enhance security.
XRP is up 433% over the last 30 days, Source: BNC XRPLX
The introduction of an XRP-focused ETF in the U.S. could significantly boost institutional investment and mainstream adoption of the cryptocurrency, especially considering XRP’s recent price surge and its position as a leading digital asset. However, the approval and success of such financial products remain contingent on regulatory developments and the resolution of existing legal disputes.
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