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WisdomTree Files for Spot XRP Exchange-Traded Fund with the SEC
New York-based asset manager WisdomTree has taken a significant step towards introducing a spot XRP exchange-traded fund (ETF) by submitting a Form S-1 registration statement with the Securities and Exchange Commission (SEC).
ETF Details and Objectives
According to the SEC filing, the WisdomTree XRP fund will be listed on the Cboe BZX Exchange, Inc, with The Bank of New York Mellon serving as the administrator, fund accountant, and transfer agent. The Trust’s investment objective is to gain exposure to the price of XRP, less expenses and liabilities of the Trust’s operations, by holding XRP and valuing its Shares daily.
The Trust’s investment objective is to gain exposure to the price of XRP, less expenses and liabilities of the Trust’s operations. In seeking to achieve its investment objective, the Trust will hold XRP and will value its Shares daily.
ETF Structure and Trading
Although WisdomTree has not unveiled a ticker symbol for the XRP ETF, the firm explained that the shares will be sold or redeemed in blocks of 5,000 shares based on the quantity of XRP attributable to each share. The WisdomTree ETF would track the XRP price, currently the third-largest crypto asset by market value, just below Bitcoin and Ethereum.
Regulatory Approval and Challenges
To bring a new ETF class into the market, WisdomTree must submit a 19b-4 Form and obtain the SEC’s approval for both the S-1 and 19b-4 Forms before the XRP ETF can list and trade on national exchanges. However, this may be complicated by the ongoing legal battle between XRP’s developer firm Ripple Labs and the SEC, which has been ongoing since 2020.
Competition and Market Demand
WisdomTree is not the first firm to attempt to introduce more crypto ETF offerings beyond Bitcoin and Ethereum. Other firms, such as Bitwise and 21Shares, have also filed for XRP-based funds, while Canary Capital has sought approval for ETFs based on assets like Solana, Litecoin, and HBAR.
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