WisdomTree, one of the world’s premier ETF issuers and asset managers, recently took an important step by filing an S-1 application with the US Securities and Exchange Commission for a spot XRP ETF index fund. WisdomTree became only the fourth US asset manager to file such an application with regulators for approval.
Rising Demand for XRP ETFs
WisdomTree XRP Fund aims to track price movements of XRP by providing investors with shares listed on Cboe BZX Exchange. Through cash creation and redemption processes; with potential approval for an in-kind model; Coinbase Global affiliates will act as principal execution agents and custodians, playing an essential role in supporting US spot XRP ETF market functionality.
Bitwise, Canary Capital and 21Shares have joined Bitwise in filing ETF applications for spot XRP ETFs in recent months. Bitwise was first to file in October; Canary Capital shortly thereafter; 21Shares then introduced its Core XRP Trust sometime before November.
XRP’s Price Skyrockets
As a result of these filings, XRP has experienced an extraordinary rise in value; seeing 41% increase over 24 hours and 430% year-to-date growth. This dramatic surge has propelled its market capitalization to approximately $153 billion with its token currently trading at $2.71. Furthermore, trading volume surged 321% year-on-year bringing it tantalizingly close to its all-time high of $3.40 set back in 2018.
Politics have also contributed to this momentum, particularly the anticipated policy changes promised by President-elect Donald Trump that are expected to alter cryptocurrency regulation. Trump’s election victory, coupled with Gary Gensler’s announcement of resignation as SEC Chair has given optimism back into the market – especially considering that Trump will officially take office on January 20th.
Ripple Labs and Ripple XRP have been at the center of SEC scrutiny due to allegations against it for handling tokens as unregistered securities, with this change likely signaling a change in approach from Ripple and potentially leading to resolution of legal battles with them. This development has caused much optimism regarding Ripple vs SEC legal battles.
