KEY POINTS
- WisdomTree is joining Bitwise, Canary Capital, and 21Shares in the $XRP ETF brood
- $XRP climbed above $1.50 at one point Monday night following the news
- The altcoin used to be the world's second largest digital currency before the SEC's Ripple lawsuit
Global exchange-traded fund (ETF) and exchange-traded product (ETP) sponsor WisdomTree has filed with the state of Delaware for an XRP ETF, becoming one of the early movers.
In its Monday filing with the state of Delaware's Division of Corporations, WisdomTree registered the XRP ETF as a "statutory trust" called the WisdomTree XRP Fund. The company, which is also an asset manager, follows in the recent filing of 21Shares.
WisdomTree's Crypto History
WisdomTree is one of the U.S.-listed spot Bitcoin ETFs that the Securities and Exchange Commission (SEC) approved for issuance earlier this year. Its BTCW is not as popular as BlackRock's IBIT or Fidelity's FBTC, but its approval along with the other BTC ETFs marked a significant breakthrough for Bitcoin to be recognized in the traditional financial space.
Its latest filing puts WisdomTree fourth in line after Bitwise, Canary Capital, and 21Shares were the first three movers in steps toward issuing an XRP ETF. The Delaware filing is just the first step, as applying issuers still need to file S-1 forms and 19b-4 documents, then wait for approval from the SEC before the funds can go live.
$XRP Price Jumps Amid Good News
As news of the Delaware filing started spreading on social media, XRP prices climbed, at one point hitting $1.52 Monday night, according to data from CoinGecko. The altcoin was on a 24-hour spike of 2.4% amid a 28% increase in the past week.
XRP wasn't always a struggling altcoin. Its all-time high was at $3.40 back in 2018 – at the time, the digital currency was the second most valuable coin, only behind Bitcoin.
Ripple, which funded the development of the XRP Ledger (XRPL), was caught in the crosshairs of the Gary Gensler SEC's crypto crackdown, hitting XRP prices hard and sending the token below $1 after the SEC filed a lawsuit against the company.
The cryptocurrency only recently started the arduous climb back to $1, buoyed by positivity when Donald Trump was elected as the next U.S. president. The token's price surged further after Gensler announced he will resign as SEC Chair during Trump's inauguration.
$XRP Community Give WisdomTree a Nod
The XRP Army – the token's holders pushing for broader adoption – believe that the increasing interest in the digital coin through ETFs is a clear signal that WisdomTree's latest move will attract more investors.
$XRP will bring in more investors who were sitting on the sidelines once this launches on the market.
— Angelica Saldaña S.T.B.❤️🔥 (@AngelofYHVH) November 25, 2024
#XRP Letsssss Goooo!
— E.B. (@desertdesire69) November 25, 2024
One user noted how XRP holders have been waiting for two bull cycles, given the token's stagnant state throughout Ripple's legal defense against the SEC's lawsuit.
That’s amazing news for all the $XRP holders out there that have been waiting for 2 bull cycles
— Lamothe Tanguy (@Thebiggggermac) November 25, 2024
Meanwhile, Ripple CEO Brad Garlinghouse has been very optimistic in recent days, saying he is thankful for Gensler's pre-term resignation and also expressed excitement for Trump's Treasury Secretary pick, Scott Bessent, who is known for his pro-Bitcoin views.
