WisdomTree, a pioneer in the cryptocurrency ETF arena, recently made headlines by filing for a spot XRP exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). This move underscores its ambition to further expand its crypto offerings. Previously noted for being among the first to bring a spot Bitcoin ETF to market in the United States, the firm now aims to extend its innovative streak to XRP.
On December 2, WisdomTree formally submitted a Form S-1 to the SEC for the proposed launch of its new fund, the WisdomTree XRP ETF. This initiative positions WisdomTree alongside other active players in the field. If approved, the ETF would enable investors to gain exposure to XRP by listing its shares on the Cboe BZX Exchange. The process hinges on the SEC's decision and may incorporate a cash-create method for issuance and redemption of shares, alongside a potential in-kind option pending further authorization.
Playing a critical role in this ambition, Coinbase affiliates have been named as the designated custody provider and prime execution agent. WisdomTree acknowledges Coinbase’s considerable influence, as noted in their filing, attributing its role in fortifying the presence of spot XRP ETFs in the US market.
This existing alliance also extends to WisdomTree’s Bitcoin Fund, which commenced trading alongside nine other Bitcoin ETFs in early January.
In the competitive landscape, WisdomTree's application accompanies similar filings by Bitwise, Canary Capital, and 21Shares.
Bitwise initiated the race with its spot XRP ETF filing in October, marking its early entry into both the XRP and Bitcoin ETF markets. Following closely, Canary Capital sought SEC approval for its Canary XRP ETF soon after. Lastly, 21Shares, in collaboration with ARK Invest, introduced a proposal for its Core XRP Trust in November. Unlike its peers, the trust offers indirect exposure to XRP, highlighting diverse strategies within the burgeoning market for crypto ETFs.