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WisdomTree withdrawn its XRP ETF application on January 6,
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The company has decided to not pursue an XRP-based product at this time.
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XRP dropped by about 5% in response to the news, while spot ETFs saw an increase in flows.
WisdomTree withdrew its XRP ETF Application from the United States Securities and Exchange Commission. In a filing dated 6 January, the firm requested that its Form S-1 be withdrawn under Rule 477 Securities Act. The company said it has decided to not proceed at this time.
Registration does not include any shares or capital raised. WisdomTree has also requested that all exhibits and amendements relating to the filing be removed. The original filing was submitted on December 2, 2020.
The fund was designed for direct exposure to XRP. XRP is the fourth largest digital currency in the world with a market capitalization of approximately $137 billion.
XRP price drops, ETF inflows strong
XRP dropped sharply after the withdrawal. The token dropped roughly 5% in one day as traders reacted. The move was made despite the continued strength of ETF inflows, and no changes to existing listed products.
On Tuesday, US spot ETFs saw net inflows of $19.12 millions. Inflows totaling $1.25 billion have been recorded in just a few weeks. Total net assets are now approaching $1.62 billion.
XRPZ, managed by Franklin Templeton, led the day’s inflows with $7.35 millions. Canary’s XRPC was next with $6.49 millions, while Bitwise XRP added $3.54million. No major XRP ETF reported net outflows.
The first US spot XRP ETF will begin trading in November 2025. Additional spot-based and trust-based products have been introduced on the NASDAQ NYSE and CBOE venues. Five major US issuers have XRP products that are actively traded.
XRP exchange traded products are already available in Europe and Asia. WisdomTree, on the other hand, continues to operate a XRP product backed by physical assets in Europe, despite exiting the US filing procedure.
According to TheBlock there are six ETF applications that have not been approved by the SEC. Two of the six are spot ETFs, filed by Grayscale, CoinShares and Tuttle Capital, while the other two are futures ETFs, filed by Tuttle Capital, ProShares and Tuttle Capital.
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