Asset manager WisdomTree is considering launching an XRP ETF, joining the trend of crypto-focused ETFs reshaping investment opportunities. The filing for a trust entity in Delaware is a preliminary step toward this goal. If approved, the ETF would provide institutional investors with more access to digital assets, specifically tracking XRP’s price.
Despite regulatory uncertainty surrounding XRP due to Ripple Labs’ legal dispute with the SEC, WisdomTree’s move reflects optimism in the market. XRP reacted positively to the news, with a 7% increase in the past 24 hours, reaching $1.47. This positive momentum is significant, considering the wider market dip experienced recently.
The recent resignation of SEC chair Gary Gensler following the US elections has raised hopes for a less constrictive regulatory environment. This change could potentially benefit the crypto industry’s growth in the US, including the approval of XRP ETFs.
WisdomTree, a company overseeing $113 billion in assets, is not alone in the pursuit of XRP ETFs. Other firms like Bitwise and Canary Capital are also seeking approval for similar funds. This growing interest in crypto ETFs reflects a strategic effort to meet institutional demand and adapt to evolving market conditions.
As the crypto ETF landscape expands, analysts believe that these initiatives show foresight in anticipating future opportunities in the market. The launch of Bitcoin ETFs earlier this year has already demonstrated the significant inflows and interest from institutional investors in digital assets.
However, the approval of XRP ETFs is contingent on resolving Ripple’s legal challenges with the SEC. Until these issues are addressed, the market will continue to navigate a complex regulatory environment. Firms like WisdomTree are positioning themselves strategically to capitalize on potential opportunities in the future.
Overall, the consideration of an XRP ETF by WisdomTree is a significant development in the crypto investment space. It highlights the growing interest from institutional investors in digital assets and the efforts of companies to meet this demand. Despite the challenges ahead, the potential approval of XRP ETFs could open up new avenues for investors looking to diversify their portfolios with cryptocurrencies.
