WisdomTree withdrew its XRP ETF registration as institutional demand for the digital asset reached record levels, creating a sharp contrast between regulatory caution and market enthusiasm. The firm invoked Rule 477 to pull its Form S-1 filing, originally submitted Dec. 2, 2024, just as XRP ETFs collected $1.25 billion in cumulative inflows.
What Happened: ETF Withdrawal
WisdomTree formally withdrew its registration statement for the WisdomTree XRP Fund under the Securities Act of 1933.
The firm requested withdrawal of "all exhibits and amendments," effectively resetting its regulatory clock and avoiding potential formal rejection from the Commission. WisdomTree stated it "has determined not to proceed at this time with the offering covered by the Registration Statement."
The withdrawal mirrors BlackRock's approach to altcoin ETFs, though no direct connection exists between the two firms' strategies.
BlackRock has avoided both XRP and Solana ETF filings, maintaining focus exclusively on Bitcoin and Ethereum products despite the 2026 altcoin ETF rush.
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Why It Matters: Market Disconnect
On Jan. 6 alone, XRP ETFs recorded $19.12 million in net inflows, led by Franklin Templeton's XRPZ with $7.35 million, Canary's XRPC with $6.49 million and Bitwise with $3.54 million.
Yet XRP traded at $2.25 at press time, down 4.9% in 24 hours, revealing a disconnect between institutional capital flows and spot price performance.
Standard Chartered issued one of the most aggressive institutional calls for XRP last year, setting an $8 price target for the end of 2026.
Geoff Kendrick, the bank's Head of Digital Assets Research, noted that "improving U.S. regulatory clarity has made it easier for institutions to take exposure and has given Ripple and the XRP ecosystem room to build without constant litigation risk."
The $8 target implies approximately 300% upside from current levels, underscoring the stakes for institutional adoption throughout 2026 despite WisdomTree's retreat.
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