In a significant move within the digital asset space, WisdomTree, a New York-based asset management firm overseeing $113 billion in assets, has officially filed for an XRP exchange-traded fund (ETF) with authorities in Delaware. This filing places the firm among a growing list of financial institutions seeking to launch an XRP ETF in the United States, highlighting increasing institutional interest despite ongoing regulatory challenges.
The filing coincides with a notable price surge for XRP, the sixth-largest cryptocurrency by market capitalization. The token recently reached a three-year high of $1.60 before retracing to around $1.46. This bullish momentum is largely driven by market anticipation of a shift in regulatory approach, particularly with the expected departure of Securities and Exchange Commission (SEC) Chair Gary Gensler in early 2025. Many analysts believe a new administration may adopt a more cryptocurrency-friendly stance.
Growing Interest in XRP ETFs
WisdomTree is not alone in its pursuit of an XRP-based financial product. Several other major asset managers have also entered the race. For instance, 21Shares recently submitted an application to the SEC for its 21Shares Core XRP Trust, which would allow U.S. investors to gain exposure to XRP through traditional equity markets. Other industry players like Bitwise, Grayscale, and Canary Capital have also expressed interest in launching similar products, underscoring the rising demand for regulated crypto investment vehicles.
These developments reflect a broader trend of traditional finance embracing digital assets. The success of recently approved Bitcoin ETFs has demonstrated substantial investor appetite for accessible cryptocurrency products. An XRP ETF could further bridge the gap between conventional finance and the crypto ecosystem, offering a new avenue for portfolio diversification.
Regulatory Hurdles and the Ripple Case
Despite the growing number of filings, the SEC has not yet approved any XRP ETF. The primary obstacle remains the ongoing legal dispute between the SEC and Ripple, the company closely associated with XRP. Since 2020, the SEC has alleged that Ripple conducted an unregistered securities offering worth $1.3 billion through XRP sales.
Although Ripple secured a partial victory in July 2023—when a federal judge ruled that XRP is not a security when sold to retail investors—the SEC has appealed the decision. The case remains unresolved, creating regulatory uncertainty that impacts the approval timeline for any XRP-related ETF. This legal limbo means that applicants must navigate a complex and evolving regulatory landscape.
WisdomTree’s experience with crypto-based exchange-traded products in European markets, where it already offers ETPs for XRP and Ethereum, may strengthen its position in the U.S. competitive ETF arena. The firm’s existing infrastructure and regulatory compliance history could prove advantageous as it seeks approval.
Market Optimism and Political Influence
Prominent legal experts and cryptocurrency advocates remain optimistic about XRP’s future. Attorney John Deaton, known for representing XRP holders, has referred to the token as “the most resilient crypto asset,” highlighting its ability to endure regulatory pressure and maintain market relevance.
Broader political dynamics are also influencing market sentiment. The anticipated return of a Trump administration is expected to encourage blockchain innovation and reduce regulatory barriers. Such a shift could improve the prospects for XRP ETF approvals, aligning with a growing political consensus around supporting digital asset innovation.
Final decisions on several pending XRP ETF applications, including those from WisdomTree and 21Shares, are expected in 2025. These rulings could establish important precedents for the integration of cryptocurrencies into mainstream financial products and signal a new phase of institutional adoption.
👉 Explore more ETF investment strategies
Frequently Asked Questions
What is an XRP ETF?
An XRP ETF is an exchange-traded fund that tracks the price of XRP. It allows investors to buy and sell shares through traditional stock exchanges without directly holding the cryptocurrency, offering a familiar and regulated investment structure.
Why are firms filing for XRP ETFs now?
Asset managers are responding to growing investor demand and a potentially shifting regulatory environment. The expected change in SEC leadership and recent legal developments involving Ripple have created optimism about the approval of crypto-based ETFs.
What is the status of the SEC vs. Ripple case?
The lawsuit is ongoing, with the SEC having appealed a prior court ruling that stated XRP is not a security in retail transactions. The outcome of this case is likely to influence the approval of an XRP ETF.
How does an XRP ETF benefit investors?
An ETF provides a convenient, secure, and regulated way to gain exposure to XRP’s price movements. It eliminates the need for investors to manage private keys or use cryptocurrency exchanges, reducing technical barriers and security risks.
When can we expect an XRP ETF to be approved?
Most applications are pending review, with decisions anticipated in 2025. Approval will depend heavily on regulatory developments and the resolution of the SEC’s case against Ripple.
How does political change affect ETF approvals?
Changes in presidential administration can lead to shifts in regulatory policy and leadership at agencies like the SEC. A more crypto-friendly stance could accelerate the approval of digital asset ETFs.