Key Points
- WisdomTree has filed an S-1 registration with the SEC for a spot XRP ETF, marking the first such filing for an XRP-based exchange-traded product in the U.S.
- The fund will use Coinbase Custody for XRP storage and price its shares using an undisclosed benchmark rate, with the trust holding spot XRP directly.
First Mover in XRP ETF Space
WisdomTree has taken a pioneering step by filing for the first spot XRP exchange-traded fund in the United States, according to documents filed with the Securities and Exchange Commission on December 2. The proposed “WisdomTree XRP Fund” would list on the Cboe BZX Exchange and offer investors direct exposure to XRP through a regulated investment vehicle, marking a significant development in the cryptocurrency investment landscape.
Robust Custody and Trading Infrastructure
The filing reveals that Coinbase will play a crucial role in the fund’s operations, serving as both custodian and prime execution agent through its subsidiaries. This arrangement mirrors the infrastructure proposed in WisdomTree’s recent bitcoin ETF filing, suggesting the firm is leveraging its existing relationships with major crypto service providers. The trust will utilize a combination of “cold storage” for long-term XRP holdings and “hot wallet” solutions for active trading requirements.
Regulatory Considerations and Risk Factors
The filing comes at an interesting time, following the partial victory of Ripple Labs in its legal battle with the SEC earlier this year. WisdomTree’s registration statement dedicates significant attention to regulatory risk factors, acknowledging the ongoing uncertainty surrounding XRP’s regulatory status. The document specifically addresses the potential impact of the SEC’s appeal in the Ripple case and broader regulatory developments in the crypto space.
Market Impact and Industry Implications
Industry experts view this filing as a significant development for both XRP and the broader cryptocurrency ETF landscape. The move by WisdomTree, which already operates several European crypto ETPs, demonstrates growing institutional interest in providing regulated crypto investment products beyond bitcoin and ethereum. The firm’s experience in both traditional and digital asset management positions it well to navigate the regulatory approval process, though the timeline for potential approval remains uncertain.
The filing does not specify a timeline for launch or proposed fees, indicating these details will be added in subsequent amendments. If approved, the fund would represent a major milestone for XRP’s institutional adoption and could pave the way for similar products tracking other digital assets.
