WisdomTree Launches Europe’s Cheapest Physical XRP ETP – Pays $4M Fine For ‘Greenwashing’

As a seasoned analyst with over two decades of experience navigating the complex world of finance, I have witnessed both the triumphs and trials of numerous investment firms. In the case of WisdomTree, my perspective is tempered by a combination of admiration for their forward-thinking initiatives in digital assets and concern for their recent regulatory fines, internal disputes, and strategic ambiguity.


WisdomTree has broadened its selection of European crypto exchange-traded products (ETPs), enabling investors in various countries such as Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Poland, Netherlands, Norway, Spain, Sweden, and Switzerland to purchase them. Moreover, investors based in the United Kingdom now have the opportunity to invest in WisdomTree’s Physical Bitcoin and Physical Ethereum ETPs, providing UK-based individuals with additional choices when it comes to major digital currencies.

Through WisdomTree’s debut of the XRP-focused ETP, investors can now easily invest in XRP at a relatively low cost. However, the company has encountered some difficulties lately and seems to be moving cautiously within the cryptocurrency sector.

Questions Raised About Wisdom Tree’s Direction

In recent times, the U.S. Securities and Exchange Commission (SEC) imposed a fine of $4 million on WisdomTree for deceitful marketing of certain funds as following Environmental, Social, and Governance (ESG) standards. During the period from March 2020 to November 2022, the SEC discovered that WisdomTree’s ESG-labeled exchange-traded funds (ETFs) were investing in companies related to fossil fuels and tobacco, which were against their declared principles. This incident stirs doubts about the firm’s adherence to regulatory norms and transparency.

Apart from this, WisdomTree has been involved in disagreements with its major stockholder, ETFS Capital. In March 2024, ETFS Capital voiced disapproval of WisdomTree’s business strategy and initiated a movement encouraging shareholders to abstain from voting for certain board members. This move was prompted by apprehensions about capital management and the company’s focus on decentralized finance ventures.

Market Performance and Strategic Direction

Although WisdomTree holds a significant place in the ETF market, its stock performance has fallen short of expectations. Shareholders have voiced disappointment over the company’s strategic choices, especially its forays into digital assets and blockchain technology, which some believe divert attention from the main business. This strategic uncertainty has sparked demands for a thorough examination of the company’s path and management.

The introduction of a Physical XRP Exchange-Traded Product by WisdomTree underscores their dedication to broadening their cryptocurrency portfolio. However, investors should keep in mind the company’s past regulatory penalties, internal disagreements within management, and strategic uncertainties. These issues may impact the firm’s reliability and the results of its financial products.

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2024-11-22 15:50