WisdomTree Files to Launch an XRP ETF

WisdomTree has filed for a trust entity in Delaware as a preliminary step towards launching a new exchange-traded fund (ETF) focused on XRP. This ETF, if approved, would track the price of XRP and provide institutional investors with increased access to digital assets.

This move follows a growing trend of crypto-based ETFs opening up new investment opportunities. XRP’s price showed a positive reaction to this news, with a 7% increase over the past 24 hours to reach $1.47 as of press time. Despite a general market downturn, XRP has remained one of the top-performing assets in the top 10 cryptocurrencies by market cap.

However, there are significant legal and regulatory challenges that XRP must face before becoming an ETF-backed asset. Ripple Labs, the issuer of XRP, is currently involved in a legal dispute with the US Securities and Exchange Commission (SEC) over allegations that XRP was sold as an unregistered security.

While Ripple did gain a partial legal victory in the case in 2023, the SEC has appealed the ruling, leaving regulatory uncertainty for XRP. Despite these challenges, Ripple CEO Brad Garlinghouse remains optimistic about XRP ETFs, citing the strong demand seen for Bitcoin ETFs since their launch earlier this year.