WisdomTree Files for XRP-Based ETF as Institutional Interest in Crypto Expands

WisdomTree, a prominent global asset manager, has filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) based on XRP. The filing, submitted on December 2, reveals that the proposed trust will have its administrative management overseen by the Bank of New York Mellon, a major player in the American financial sector.

This ETF aims to track the performance of XRP, the third-largest cryptocurrency by market capitalization. While the fund's name and official ticker have not yet been disclosed, the move underscores WisdomTree’s commitment to expanding its crypto product offerings.

Industry-Wide Interest in XRP ETFs

WisdomTree is not alone in its pursuit of XRP-based investment products. Firms like Bitwise and Canary Capital have also filed similar applications throughout 2024, reflecting the growing interest in XRP among asset managers.

Bitwise Asset Management recently rebranded its XRP exchange-traded product (ETP) to Bitwise Physical XRP ETP (GXRP) as part of its broader strategy to strengthen its presence in Europe. Initially launched in 2022, this product has become a cornerstone of Bitwise’s revamp following its acquisition of ETC Group earlier this year. Ripple itself has committed strategic investments into this ETP, signaling its intent to expand beyond U.S. borders.

Bitcoin ETFs Break Records in November

While XRP garners attention, Bitcoin ETFs achieved a record-breaking November, with inflows reaching $6.4 billion. Bitcoin’s price rally—surging 45% to an all-time high of $99,000—fueled this wave of investments.

The BlackRock iShares Bitcoin Trust ETF led the charge, attracting $5.6 billion, accounting for 87% of the total inflows. Other significant funds included:

• Fidelity’s Wise Origin Bitcoin Fund with $962 million.
• Grayscale Bitcoin Mini Trust ETF with $211.5 million.
• VanEck Bitcoin ETF with $71.2 million.

However, the landscape wasn’t entirely positive. Some funds experienced notable outflows, such as the Grayscale Bitcoin Trust ETF, which lost $364 million, and the Bitwise Bitcoin ETF, which saw outflows of $40.4 million.

XRP: Riding a Wave of Momentum

XRP’s recent surge isn’t confined to investment products—it extends to legal victories, regulatory developments, and innovation. Ripple has been embroiled in a high-profile legal battle with the SEC over whether XRP qualifies as a security. While Ripple has scored partial victories, ongoing appeals and regulatory uncertainty have kept the matter unresolved. Analysts speculate that the eventual departure of SEC Chair Gary Gensler could lead to a favorable resolution for Ripple.

This anticipation, coupled with broader market conditions, has propelled XRP’s value after years of stagnation.

Ripple Launches Dollar-Pegged Stablecoin RLUSD

Ripple’s momentum also includes the launch of RLUSD, a stablecoin pegged to the U.S. dollar. The project has already secured approval from the New York Department of Financial Services (NYDFS), opening new doors for Ripple’s ecosystem.

The Bigger Picture

WisdomTree’s filing, along with broader industry moves, highlights the growing institutional appetite for cryptocurrencies like XRP. Whether through ETFs, ETPs, or innovative financial products, the crypto market is evolving rapidly, driven by increasing mainstream adoption and regulatory clarity. XRP, bolstered by both market interest and Ripple’s strategic innovations, is emerging as a focal point of this evolution.