Asset manager WisdomTree has filed for a trust entity in Delaware, a preliminary step toward launching an exchange-traded fund (ETF) focused on XRP.
If approved, the ETF would track XRP’s price, expanding institutional investors’ access to digital assets. The filing aligns with a broader trend of crypto-focused ETFs reshaping investment opportunities.
XRP reacted positively to the news and was up almost 7% over the past 24 hours to $1.47 as of press time. It has been one of the best-performing assets in the top 10 cryptocurrencies by market cap for the day, retaining almost all of its recent gains despite a wider market dip.
Regulatory uncertainty
XRP’s journey to becoming an ETF-backed asset faces significant legal and regulatory hurdles.
Ripple Labs, the issuer of XRP, remains embroiled in a legal dispute with the US Securities and Exchange Commission (SEC), which alleges XRP was sold as an unregistered security.
While Ripple scored a partial legal victory in 2023 — securing a ruling that retail XRP sales did not violate securities laws — the SEC appealed, keeping regulatory uncertainty in play.
Ripple CEO Brad Garlinghouse expressed optimism about XRP ETFs despite these challenges, pointing to strong demand. He said:
“Since Bitcoin ETFs launched earlier this year, billions have flowed into these funds, highlighting institutional appetite.”
The recent resignation of SEC chair Gary Gensler following President Donald Trump’s victory in the US elections has heightened optimism in the market that the new administration will likely end the constrictive regulatory uncertainty that has stifled the industry’s growth in the US.
Expanding crypto ETF landscape
WisdomTree, which oversees $113 billion in assets, joins firms like Bitwise and Canary Capital in seeking approval for XRP ETFs.
WisdomTree’s filing adds to a growing list of crypto ETF proposals as the market diversifies. Last week, Bitwise submitted an application for a Solana ETF, and 21Shares recently proposed the 21Shares Core XRP Trust for listing on the Cboe BZX Exchange.
Analysts believe these filings reflect a strategic push to meet institutional demand while awaiting clearer regulatory frameworks.
The ETF Store President Nate Geraci said:
“The move demonstrates foresight amid evolving crypto adoption.”
As crypto gains traction in mainstream finance, ETFs offer a bridge for institutional investors to access digital assets. The launch of Bitcoin ETFs earlier this year marked a pivotal moment, with significant inflows highlighting the appeal of these products.
However, the approval of XRP ETFs remains contingent on resolving Ripple’s legal challenges. Until then, the broader market continues to navigate a complex regulatory environment, with firms like WisdomTree positioning themselves for future opportunities.
