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WisdomTree, 21Shares and Bitwise have joined Canary Capital and Canary Capital to file for XRP ETFs at the SEC.
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Brad Garlinghouse, CEO of Ripple, highlights the surge in institutional interest in XRP following ETF filings.
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Bitwise’s CIO Matt Hougan claims that XRP is still untapped because of regulatory hurdles.
The race to launch exchange-traded fund (ETF) focused on XRP is heating up. Top asset managers are submitting applications to U.S. Securities and Exchange Commission.
These ETFs are designed to provide institutional and retail investors with direct exposure to XRP (the fourth-largest crypto by market capitalization) through a regulated product. Here’s what you need to know about XRP ETFs and their impact on the crypto market.
Asset Managers are looking to launch XRP ETFs
WisdomTree was the latest asset manager to submit an S-1 application to the SEC for the launch of an XRP ETF. WisdomTree XRP Fund will be listed at the Cboe BZX Exchange with BNY Mellon as the fund administrator. The ETF will track XRP’s spot price by using an independent reference rate sourced directly from major trading platforms.
21Shares also filed for Core XRP Trust. This spot-based ETF is designed to provide an indirect exposure to XRP. Coinbase Custody Trust Company will act as custodian of the fund’s assets. If approved, the ETF would trade on the Cboe BZX Exchange.
These filings are significant milestones, as WisdomTree & 21Shares join Bitwise & Canary Capital on the growing list of firms that seek SEC approval for XRP-based ETFs.
Bitwise Remains Positive About XRP
Bitwise, as the first asset manager who applied for a spot-based XRP exchange traded fund, is confident in XRP despite regulatory challenges. Matt Hougan is the Chief Investment Officer of the company. According to him, XRP’s full potential has not yet been realized due to the SEC v. Ripple litigation.
Hougan believes that the XRP Ledger technology and community support are key factors in its suitability for institutional adoption.
Bitwise’s five-year campaign to create a Bitcoin ETF demonstrates its persistence in pursuing ETFs. This suggests that a more favorable regulatory climate will eventually lead to approval.
Ripple CEO Highlights Institutional interest
Brad Garlinghouse, Ripple’s CEO, has also highlighted the growing interest of institutions in XRP. He cited recent filings from 21Shares Canary Capital and Bitwise to demonstrate the demand for XRP based financial products.
Garlinghouse believes that these ETFs will attract significant capital inflows. They are similar to Bitcoin ETFs which have already attracted over $33 billion by 2024.
Garlinghouse also praised Grayscale for its efforts to convert the Digital Large Cap Fund (which includes XRP) into a spot based ETF. He said that basket ETFs would bring in more investors to the crypto ecosystem, while increasing XRP’s liquidity.
Regulatory hurdles and the Future of XRP ETFs
The SEC’s recent appeal against the Ripple ruling has created uncertainty in the timeline for XRP approvals. Ripple, along with the crypto community, remains optimistic about the regulatory clarity that the Trump-led Administration could bring, which may open the door to XRP ETFs.
Gary Gensler has already announced his resignation, and Trump appointed Paul Atkins to be the SEC Chairman.
The race to launch XRP-based ETFs is a testament to the appeal of cryptocurrency as a long term investment. The crypto market is waiting for a new wave of capital to flow into XRP and digital assets as the SEC reviews the applications.
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