WisdomTree Files for XRP ETF as Ripple Coin Hits 3-Year High at $1.60

WisdomTree, a well-known asset management firm based in New York with $113 billion in assets, has taken a step towards launching an XRP exchange-traded fund (ETF) by filing with Delaware authorities. This move puts WisdomTree in line with other companies looking to introduce an XRP ETF to the U.S. market, showing a growing interest in the cryptocurrency despite uncertainties in regulations.

XRP, currently ranked as the sixth-largest cryptocurrency by market capitalization, has been in the spotlight recently due to a significant price increase. The token recently hit a three-year high of $1.60 before leveling off around $1.46. Investors are excited about the possibility of regulatory changes, especially with the expected departure of Securities and Exchange Commission (SEC) Chair Gary Gensler in early 2025. Many believe that the new administration will have a more positive view of cryptocurrencies.

Apart from WisdomTree, other major players are also working on XRP ETFs. Companies like 21Shares, Bitwise, Grayscale, and Canary Capital have all expressed interest in bringing XRP-based products to the market, reflecting the growing demand for such financial instruments.

Despite the increase in filings, the SEC has not yet approved any XRP ETFs. The SEC has been involved in a legal battle with Ripple, the issuer of XRP, since 2020. While there was a partial victory for Ripple in July 2023 when a court ruled that XRP is not a security when sold to retail investors, the case has been appealed and remains unresolved, presenting challenges for ETF approvals.

WisdomTree’s history with cryptocurrency exchange-traded products in Europe, including offerings for XRP and Ethereum, positions the firm as a strong contender in the competitive market. Additionally, BlackRock’s iShares Bitcoin ETF has shown a strong interest in digital asset investment products in the U.S., paving the way for other crypto ETFs.

Legal experts and crypto advocates remain optimistic about XRP’s strength. Attorney John Deaton recently described XRP as the most resilient crypto asset due to its ability to withstand regulatory challenges and remain relevant in the market.

The return of the Trump administration is expected to foster blockchain innovation, potentially creating a more favorable environment for the approval of XRP ETFs.

Decisions on pending XRP ETF applications, including those from WisdomTree and 21Shares, are expected in 2025. These outcomes are likely to set important precedents for integrating cryptocurrency into mainstream financial markets.

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