WisdomTree Files for XRP ETF with SEC as Ripple’s Altcoin Overtakes USDT

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As a seasoned researcher with decades of experience in the financial industry, I must admit that the recent flurry of XRP ETF filings by major asset management firms has piqued my interest significantly. Having witnessed the rise and fall of numerous cryptocurrencies over the years, I’ve learned to be cautious yet optimistic about such developments.

WisdomTree, a major asset management firm, has officially filed with the SEC for a spot XRP exchange-traded fund (ETF). This move makes WisdomTree the fourth US firm seeking approval for such a fund.

As an analyst, I’m excited to share that the new investment opportunity, the WisdomTree XRP Fund, is under consideration. This fund allows me and other investors to track the price fluctuations of XRP by acquiring shares, which will be traded on the Cboe BZX Exchange.

SEC to Decide on Four XRP ETF Applications

If given the green light, the WisdomTree fund would function with a cash-based system for share issuance and redemption. Pending further approvals, they might also introduce an in-kind creation method at a later stage.

The document specifies that Coinbase Global serves as both the principal trading intermediary and the safekeeper of XRP within this particular fund. Notably, Coinbase has previously partnered with WisdomTree for their Bitcoin ETF (BTCW).

In simpler terms, a well-known cryptocurrency investor named Myles Gregory recently stated on his platform that XRP investors aren’t excited about the current price of $2. He believes that true excitement should come when the RLUSD stablecoin experiences widespread adoption, potentially reaching trillions of dollars. Gregory also mentioned that XRP serves as a bridge currency and that an XRP-based ETF has not yet been approved.

In the competition to launch XRP Spot Exchange-Traded Funds (ETFs) in the United States, WisdomTree has entered the fray alongside Bitwise, Canary Capital, and 21Shares. Bitwise took the lead by submitting an application for the Bitwise XRP ETF on October 2, with Canary Capital filing its own application for the Canary XRP ETF a week later.

21Shares applied on November 1st for their Core XRP Trust, offering an indirect investment opportunity in XRP by granting investors access to the asset’s market fluctuations.

XRP Becomes the Third Largest Cryptocurrency by Market Cap 

This submission occurs during a strong upward trend in XRP’s market activity. In fact, the altcoin experienced an almost 50% price increase today, pushing its monthly gains above 400%. As a result, XRP now boasts a market capitalization of $153.5 billion, surpassing both Solana and USDT to claim the position as the third largest asset in terms of market size.

The strong upward trend in the market began following Donald Trump’s re-election in November and the departure of the existing SEC chair. The new SEC chair, Gensler, has been vocal about his criticism towards XRP and Ripple, prolonging a legal dispute that kept the value of XRP trading below $1 for over three years.

With Trump planning changes at the SEC, there’s been a spike in institutional interest towards XRP. Consequently, investment companies such as WisdomTree are taking the initiative to apply for an ETF, as regulatory constraints gradually lessen.

As previously reported by BeInCrypto last week, New York authorities are considering endorsing Ripple’s stablecoin, RLUSD. This potential approval could boost XRP’s liquidity even more, potentially affecting its price.

If the SEC ultimately approves a spot XRP ETF, it might cause XRP’s market value to respond in a manner similar to Bitcoin this year, possibly extending its record high.

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2024-12-02 21:29