Spot XRP ETF Filing Overview
The New York-based ETF giant has become the first prominent exchange-traded fund provider to formally file an S-1 with the U.S. SEC for a spot XRP ETF. WisdomTree is joining a growing list of firms-the fourth in the United States-alongside Bitwise, Canary Capital, and 21Shares-to file applications that would give the green light for such a product in a market dominated by leading cryptocurrencies.
Details of the WisdomTree XRP Fund
The proposed ETF, which will be known as the WisdomTree XRP Fund, would allow investors to gain exposure to the price movements of XRP through shares listed on the Cboe BZX Exchange. The fund intends to utilize a cash-create method for the creation and redemption of shares, thus making processes easier for investors. It also says that an in-kind transaction model may be adopted at some point, pending additional regulatory approvals.
Role of Coinbase Affiliates
The affiliates of Coinbase Global are expected to play a major role in WisdomTree’s ETF offering. According to the filling, Coinbase is set to become the XRP custodian and the prime execution agent. In this regard, it proves Coinbase as the key player for supporting U.S.-based spot cryptocurrency ETFs. This is not the first time that WisdomTree is teaming up with Coinbase, as the exchange also supports the WisdomTree Bitcoin Fund, BTCW which started trading in January 2024.
Other Spot XRP ETF Filings
WisdomTree’s filing is the latest in a series of attempts from various firms to offer similar products. Bitwise was first into the race, filing an S-1 for a spot XRP ETF on October 2. Canary Capital was next, on October 9, while 21Shares filed on November 1. While these products will try to give exposure to XRP, they are different in structure and method, with some offering direct exposure and others, like the case of 21Shares, allowing indirect access to the market.
How it would Affect the Crypto Market
Such approval by the SEC would certainly drive up the U.S. crypto investment landscape. These types of products give investors exposure to XRP in a regulated manner, thereby expanding access to such markets. The filing by WisdomTree represents yet another move that evidences the broadening institutional interest in cryptocurrencies as well as their ability to challenge legacy financial markets. If approved, the fund could pave the way for more diverse cryptocurrency investment opportunities.
