WisdomTree has filed for a spot XRP exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), becoming the fourth company to seek approval for an XRP-based ETF in the U.S. The WisdomTree XRP Fund aims to offer investors exposure to the price of XRP through shares listed on the Cboe BZX Exchange. This move follows the company's success with its Bitcoin ETF, launched earlier this year.
The filing, submitted on Dec. 2, details that the ETF will use a cash-create method for share creation and redemption. The in-kind model may be explored after additional approvals. Coinbase affiliates will serve as the prime execution agent and XRP custodian for the fund, a role they also play for several other XRP exchange-traded products. The Bank of New York Mellon will act as the fund’s administrator.
The submission comes as Ripple, the company behind XRP, continues its legal battle with the SEC over the regulatory status of XRP. While the outcome remains uncertain, some analysts speculate that changes in SEC leadership could make it easier for XRP-based products to gain approval. This speculation is further fueled by the recent surge in the price of XRP, which hit its highest levels since 2021 in late November.
WisdomTree joins other asset managers such as Bitwise, Canary Capital and 21Shares, which have already filed for spot XRP ETFs. Bitwise was the first to file for an XRP ETF in October, followed by Canary Capital and 21Shares in subsequent weeks. While 21Shares’ product offers indirect access to XRP through a trust, WisdomTree’s product aims to directly track the price of XRP.
Ripple is also making moves outside of the ETF market. The company is preparing to launch RLUSD, a stablecoin pegged to the U.S. dollar, which may receive approval from the New York Department of Financial Services in early December. In Europe, Bitwise recently rebranded its XRP product to the Bitwise Physical XRP ETP (GXRP) after acquiring the ETC Group earlier this year.
While XRP ETFs are gaining traction, the SEC's stance on approving such products remains uncertain. However, with growing interest in crypto assets and the potential shift in regulatory attitudes, firms like WisdomTree are positioning themselves to take advantage of the changing landscape. The outcome of Ripple’s ongoing legal battle with the SEC may also influence the future of XRP-based investment products.