New York-based asset manager WisdomTree has submitted a filing for an XRP exchange-traded fund (ETF), joining the growing list of firms seeking to launch such a product. This move comes as optimism about the future of XRP has driven its price to levels not seen since 2021.
The initial paperwork has been filed with the state of Delaware, which is the first step towards obtaining approval for the ETF. WisdomTree will then need to make a formal filing with the Securities and Exchange Commission (SEC), the top regulator on Wall Street, in order to advance the approval process.
XRP is a digital coin that was created by the founders of Ripple, a fintech company. It is currently the sixth-largest digital asset by market capitalization and is commonly used for cross-border money transfers.
XRP has attracted significant attention due to an ongoing legal battle between Ripple and the SEC. The SEC filed a $1.3 billion lawsuit against Ripple in 2020, alleging that the company and its founders sold unregistered securities in the form of XRP to raise funds.
However, with Gary Gensler, the current Chair of the SEC, set to step down in January, some industry observers anticipate a more favorable regulatory environment for the digital asset industry. Under Gensler’s leadership, the SEC has taken legal action against several crypto companies, including Ripple.
Investor optimism is reflected in the soaring price of XRP, which recently reached a three-year high of $1.60 per coin following news of the SEC restructuring. The current trading price is $1.46, representing a 24-hour increase of over 3%, according to CoinGecko. Despite this surge, the coin is still 57% below its all-time high of $3.40 in January 2018.
The SEC has already approved Bitcoin ETFs and their Ethereum counterparts this year. These products have seen significant inflows, with the Bitcoin ETFs, in particular, breaking records, led by BlackRock’s iShares fund.
WisdomTree is one of the asset managers that received regulatory approval for a Bitcoin ETF, and it also offers an Ethereum ETF in Europe. Now, along with other firms like 21Shares and Bitwise, WisdomTree aims to secure approval for additional crypto products in the United States.