$113B asset manager files for SEC approval of XRP ETF

WisdomTree, a global asset manager overseeing $113 billion in assets, has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) to launch a spot XRP (CRYPTO:XRP) exchange-traded fund (ETF).

The proposed ETF, managed by WisdomTree Digital Commodity Services LLC, seeks to track XRP's performance while accounting for operational costs.

It will trade on the Cboe BZX Exchange, with daily share values determined through a reference rate aggregating data from key XRP trading platforms.

According to the filing, share creation and redemption will occur in large blocks, with transactions conducted in cash unless regulatory approval is granted for in-kind XRP transfers.

This initiative follows WisdomTree’s earlier introduction of the WisdomTree Physical XRP (XRPW) on European markets, which was promoted as a cost-efficient way to gain exposure to XRP.

XRP has witnessed a surge in value, increasing over 400% in the past month.

Its market capitalisation has reached approximately $150 billion, surpassing Tether (CRYPTO:USDT) to become the third-largest cryptocurrency.

This growth is attributed to expectations of favorable regulatory changes, particularly with the potential departure of SEC Chairman Gary Gensler.

Market speculation regarding Ripple’s possible initial public offering (IPO) and the release of a stablecoin, RLUSD (CRYPTO:RLUSD), has further fueled confidence in XRP.

Ripple has also announced plans to invest in the rebranded Bitwise Physical XRP exchange-traded product (ETP).

Chris Giancarlo, former Chair of the Commodity Futures Trading Commission (CFTC), stated that under new SEC leadership, the ongoing case against Ripple could potentially be dismissed.

At the time of reporting, the XRP price was $2.69.