WisdomTree, a global asset manager, has submitted an application to the SEC for a spot XRP ETF, making it the fourth company in the U.S. to pursue this option. The proposed WisdomTree XRP Fund aims to give investors exposure to XRP’s price changes through shares listed on the Cboe BZX Exchange. Recently, XRP has seen a remarkable price surge, rising 41% in just one day and 430% over the past month, with the current price at $2.71. This growth comes amid increasing investor interest and evolving cryptocurrency regulations, particularly following political changes, including the expected leadership shift at the SEC. Other firms like Bitwise and 21Shares have also filed for XRP ETFs, indicating rising competition in this Market.
WisdomTree, a global investment firm, has taken a significant step by submitting an S-1 application to the US Securities and Exchange Commission (SEC) for a spot XRP exchange-traded fund (ETF). This makes it the fourth firm in the United States to seek approval for an XRP ETF. The fund, called the WisdomTree XRP Fund, is designed to give investors access to the price movements of XRP, with shares expected to be listed on the Cboe BZX Exchange. The fund intends to use a cash-create method for creating and redeeming shares, with the potential to switch to an in-kind method if approved later.
In a collaboration with Coinbase, which previously partnered with WisdomTree for its Bitcoin ETF, Coinbase Global affiliates will act as the prime execution agent and custodian for XRP in the ETF. WisdomTree emphasized the crucial role Coinbase plays in the US XRP ETF Market.
Other asset managers, such as Bitwise, Canary Capital, and 21Shares, have also filed for spot XRP ETFs, indicating a growing interest in this type of investment product.
This ETF filing comes at an exciting time for XRP, which has experienced a remarkable 41% price increase in just one day and a whopping 430% surge over the past month. Currently trading at around $2.71, XRP is now sitting just 23% below its all-time high of $3.40, reached in 2018. This price jump reflects strong investor sentiment, partly spurred by political events, including the election of President-elect Donald Trump, who has promised significant changes in cryptocurrency regulations.
With changes in leadership at the SEC and ongoing legal matters involving Ripple Labs, which created XRP, there is a growing optimism about the future of XRP in the financial markets.
Featured image from DALL-E, chart from TradingView.com.
What is an XRP ETF?
An XRP ETF is an exchange-traded fund that would let people invest in XRP without owning it directly. It tracks the price of XRP and is traded on stock exchanges.
Why is WisdomTree filing an S-1 application?
WisdomTree filed an S-1 application with the SEC to get approval to launch their XRP ETF. This is a key step in starting the fund and offering it to investors.
What does the SEC do?
The SEC, or Securities and Exchange Commission, is a U.S. government agency that regulates the securities industry. It makes sure that companies follow the rules when selling financial products like ETFs.
Why is everyone talking about XRP ETFs now?
There is a growing interest in cryptocurrency investments, and many companies, like WisdomTree, see an opportunity to offer XRP ETFs. The recent news has sparked excitement in the Market.
What happens next in the ETF approval process?
After the S-1 application is filed, the SEC will review it. They may ask for more information or change things. If everything goes well, they could approve the ETF, allowing it to be traded.
