WisdomTree joins XRP ETF applicants amid ongoing SEC lawsuit
WisdomTree joins XRP ETF applicants amid ongoing SEC lawsuit
WisdomTree Funds, a prominent New York-based asset management firm, has filed for an XRP exchange-traded fund (ETF) in Delaware. The filing, made on November 25, marks an initial step toward potential approval from the U.S. Securities and Exchange Commission (SEC). WisdomTree joins other early XRP ETF applicants, including Bitwise, Canary Capital, and 21Shares. However, the SEC has yet to approve any XRP ETF applications.
The move comes as XRP remains in legal limbo. Ripple, the company behind XRP, secured a partial victory in its battle with the SEC in July 2023, when a court ruled that XRP was not a security. Despite this, the SEC filed an appeal in October 2024, delaying further developments in the case until at least January 2025.
Regulatory shifts under Trump Administration
The timing of WisdomTree’s filing coincides with significant political changes in the U.S. Following Donald Trump’s victory in the 2024 presidential election, analysts anticipate a dramatic shift in the federal government’s approach to cryptocurrency regulation. Trump’s campaign included promises to make the U.S. a global leader in Bitcoin, crypto, and blockchain technology.
The new administration is expected to overhaul the current regulatory framework, potentially replacing key officials, including SEC Chair Gary Gensler. This could impact ongoing lawsuits against Ripple and other crypto firms, creating a more favorable environment for initiatives like XRP ETFs.
The potential for an XRP ETF approval depends heavily on the evolving regulatory environment. If the incoming administration chooses to dismiss longstanding legal actions against Ripple, it could pave the way for swift SEC approval of XRP ETFs.
WisdomTree’s proactive filing underscores optimism that regulatory reforms under the new administration may accelerate institutional adoption of cryptocurrency. The outcome will likely serve as a bellwether for the broader crypto market’s trajectory in the U.S.
Ripple is also partnering with Archax to launch a tokenized fund on XRPL, aiming to revolutionize DeFi.
