Key Insights
- WisdomTree has filed a registration statement with the SEC for a potential XRP Exchange-Traded Fund, to be listed on the Cboe BZX Exchange.
- The filing comes amid an ongoing legal dispute between the SEC and Ripple, with complex discussions about XRP’s status as a potential security.
NEW YORK (MarketsXplora) – WisdomTree has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for a potential XRP Exchange-Traded Fund (ETF), signaling a significant move in the cryptocurrency investment landscape.
The proposed WisdomTree XRP Fund, if approved, would be listed on the Cboe BZX Exchange, with the Bank of New York Mellon serving as administrator. The fund’s primary objective is to provide investors exposure to XRP’s price, less operational expenses and liabilities.
The filing comes amid an ongoing legal dispute between the SEC and Ripple, which began in 2020 when the agency accused the company of raising $1.3 billion through unregistered securities sales. In a landmark ruling last year, U.S. District Court Judge Analisa Torres determined that some of Ripple’s XRP sales did not violate securities laws, while ruling that other direct institutional sales were securities.
WisdomTree cautioned investors about the complex regulatory environment, noting that “determining whether a particular digital asset qualifies as a security is complex and unpredictable.” The filing acknowledges the potential for XRP to be classified as a security, with the SEC suggesting digital asset classifications can evolve.
The company registered an XRP entity in Delaware on November 25, joining other issuers like Bitwise, 21Shares, and Canary Capital in pursuing spot XRP ETF approvals. Currently, XRP stands as the world’s third-largest cryptocurrency after bitcoin and ether.
Both the SEC and Ripple continue to work on appealing aspects of Judge Torres’ previous ruling, with Ripple having been ordered to pay $125 million in fines in August.