WisdomTree, a major asset management company, has moved closer to introducing an exchange-traded fund (ETF) based on XRP, the cryptocurrency developed by Ripple. The company recently filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC), marking a key step in its efforts to offer this financial product.
If approved, the ETF would make it easier for investors to trade XRP on traditional stock markets, just like they would with other ETFs. This filing shows WisdomTree’s commitment to expanding cryptocurrency access for U.S. investors, following its past efforts to launch Bitcoin and Ethereum-based ETFs.
XRP ETF
An XRP ETF (Exchange-Traded Fund) is a financial product designed to track the price of XRP, the cryptocurrency created by Ripple, and trade on traditional stock exchanges like shares of stock. ETFs are investment vehicles that allow individuals and institutions to gain exposure to assets without directly holding them.
In the case of an XRP ETF, investors could participate in the performance of XRP without the need to buy, store, or manage the cryptocurrency directly.
The main advantages of an XRP ETF would include easier access to cryptocurrency markets for traditional investors, reduced risks associated with securing and managing digital assets, and regulatory oversight (if approved by entities like the U.S. SEC).
More interest in XRP
As interest in cryptocurrency ETFs surges, numerous companies are actively submitting proposals for various digital assets, with XRP drawing significant attention. This trend is spurred by growing optimism surrounding Ripple, particularly as the company widens its market reach and navigates legal hurdles.
Investors are reacting positively to Ripple’s strides in revolutionizing cross-border payment methods and its proactive alignment with regulatory frameworks.
Furthermore, Ripple’s recent triumphs in legal disputes with the SEC, coupled with a more favorable U.S. regulatory climate for cryptocurrencies, have mitigated previous growth-inhibiting uncertainties.
WisdomTree launches crypto product in Europe
WisdomTree made a strategic move in late November by launching the WisdomTree Physical XRP (WXRP) on prominent European exchanges such as Deutsche Börse Xetra, Six Swiss Exchange, and Euronext.
This product provides investors direct access to XRP’s market value with a competitive 0.50% management fee, considered Europe’s most cost-effective option for XRP investments, according to WisdomTree.
The ETP is backed by XRP itself and employs an advanced dual-custody model to safeguard assets through cold storage. Part of WisdomTree’s expanding assortment of crypto ETPs, which includes offerings in Bitcoin, Ethereum, Solana, and assorted asset baskets, it delivers a regulated channel for XRP investment.
