Global exchange-traded fund (ETF) issuer and asset manager WisdomTree has officially submitted an S-1 application for a spot XRP ETF to the US Securities and Exchange Commission (SEC), becoming the fourth asset manager in the US to seek approval of the index fund.
Growing Interest In XRP ETF
The proposed fund, named the WisdomTree XRP Fund, aims to provide investors with exposure to XRP’s price movements through shares listed on the Cboe BZX Exchange. The fund plans to utilize a cash-create method for share creation and redemption, with the possibility of adopting an in-kind model pending further approvals.
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Coinbase Global affiliates will serve as the prime execution agent and custodian for XRP, having previously collaborated with WisdomTree on its Bitcoin ETF that launched in January of this year. In its filing, WisdomTree noted the importance of Coinbase in the US spot XRP ETF ecosystem, stating:
Coinbase serves as the XRP custodian and prime execution agent for several competing exchange-traded XRP products and, as such, plays a critical role in supporting the US spot XRP exchange-traded product ecosystem.
Other firms such as Bitwise, Canary Capital, and 21Shares have also filed for spot XRP ETFs. Bitwise was the first to file in October, followed by Canary Capital on October 9 and 21Shares with its Core XRP Trust on November 1.
XRP Nears All-Time High
The XRP ETF filing comes on the heels of a significant price surge for the token, which has recorded a 41% increase in just 24 hours and a major 430% rise over the past month, boosting its market capitalization to approximately $153 billion.
Currently trading at $2.71, XRP has experienced a substantial 321% increase in trading volume, indicating strong investor interest. The token is now only 23% below its all-time high of $3.40, reached during the 2018 cryptocurrency boom.
This upward momentum has been partly attributed to recent political developments, particularly the election victory of President-elect Donald Trump, who has pledged to implement significant changes in cryptocurrency regulation.
Trump’s promises have been bolstered by the resignation announcement of SEC Chair Gary Gensler, whose last day in office will coincide with Trump’s inauguration on January 20.
The SEC has been a focal point of controversy for XRP over the past three years, following a lawsuit claiming that Ripple Labs, the company behind XRP, violated securities laws by treating its tokens as unregistered securities.
However, with shifts in leadership at the SEC and the Commodity Futures Trading Commission (CFTC), there is a growing sense of optimism regarding the potential conclusion of Ripple’s lengthy legal battle with the SEC.
Featured image from DALL-E, chart from TradingView.com