WisdomTree Aims for Approval of Spot XRP ETF in the US
WisdomTree, a prominent global issuer of exchange-traded funds (ETFs) and asset manager, has taken a significant step by filing an S-1 application with the US Securities and Exchange Commission (SEC) for a spot XRP ETF. This move positions WisdomTree as the fourth asset manager in the United States seeking approval for an index fund centered around XRP.
Increasing Interest in XRP ETFs
The proposed fund, dubbed the WisdomTree XRP Fund, is designed to offer investors exposure to the price fluctuations of XRP through shares that will be listed on the Cboe BZX Exchange. The fund plans to employ a cash-create method for the creation and redemption of shares, with the potential to switch to an in-kind model if further approvals are granted.
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Coinbase Global affiliates are set to play a crucial role as the primary execution agent and custodian for XRP, building on their previous collaboration with WisdomTree for its Bitcoin ETF launched earlier this year. WisdomTree’s filing highlights Coinbase’s pivotal role in the US spot XRP ETF ecosystem, noting:
“Coinbase serves as the XRP custodian and prime execution agent for several competing exchange-traded XRP products and, as such, plays a critical role in supporting the US spot XRP exchange-traded product ecosystem.”
In addition to WisdomTree, other companies such as Bitwise, Canary Capital, and 21Shares have also submitted filings for spot XRP ETFs. Bitwise led the charge with its filing in October, followed by Canary Capital on October 9, and 21Shares with its Core XRP Trust on November 1.
XRP Approaches Historical Price Highs
The application for an XRP ETF coincides with a remarkable price surge for the XRP token, which has witnessed a 41% increase in just 24 hours and a staggering 430% rise over the past month. This surge has propelled its market capitalization to around $153 billion.
Currently, XRP is trading at $2.71, marking a substantial 321% increase in trading volume, indicating a heightened level of investor interest. The token now stands only 23% below its all-time high of $3.40, achieved during the cryptocurrency boom of 2018.
The current upward trend has been partially attributed to recent political developments, notably the election victory of President-elect Donald Trump, who has vowed to implement significant changes in cryptocurrency regulation.
Trump’s promises have gained further traction with the announcement of SEC Chair Gary Gensler’s resignation, which is set to coincide with Trump’s inauguration on January 20.
SEC’s Role in XRP’s Journey
For the past three years, the SEC has been at the center of controversy regarding XRP, following a lawsuit that accused Ripple Labs, the entity behind XRP, of violating securities laws by treating its tokens as unregistered securities.
However, with impending leadership changes at both the SEC and the Commodity Futures Trading Commission (CFTC), there is growing optimism about a potential resolution to Ripple’s prolonged legal battle with the SEC.
The daily chart illustrates XRP’s upward price trajectory, reflecting renewed investor confidence.
