WisdomTree Enters XRP ETF Race Amid Rising Confidence In Trump’s New Administration
On Monday, it was announced that asset manager WisdomTree has entered the race for a spot XRP ETF. The move comes at a pivotal time, marked by expected leadership changes at the US Securities and Exchange Commission (SEC) and the recent election of Donald Trump.
XRP ETF Applications Surge
WisdomTree joins a growing list of firms, including Canary Capital, Bitwise, and 21Shares, all vying for regulatory approval to launch investment vehicles that track XRP, currently the sixth largest cryptocurrency by market capitalization.
This surge in interest follows the successful approval of similar funds focused on Bitcoin (BTC) and Ethereum (ETH), which received regulatory green lights earlier this year in January and July, respectively.
However, the path to approval for XRP ETF applications has not been as straightforward. Unlike Bitcoin and Ethereum, XRP has been embroiled in a protracted legal battle with the SEC.
Ripple Labs, the company behind XRP, has faced scrutiny regarding the classification of the token and its sales practices to investors. This ongoing litigation has cast a shadow of uncertainty over XRP’s regulatory status, a critical factor in the SEC’s evaluation of ETF filings.
Hopes For New Regulatory Framework Under Trump
Despite these challenges, the recent political landscape has sparked renewed optimism. Following Trump’s victory over Kamala Harris on November 5, and with the impending departure of SEC Chair Gary Gensler on January 20, there is speculation that a clearer regulatory framework may emerge.
This potential shift could open the door for more applications and approvals of cryptocurrency ETFs, not just for XRP but also for other digital assets such as Solana and Hedera.
The expected regulatory clarity could pave the way for a spot XRP ETF market, providing investors with more accessible ways to invest in this digital asset and a potential resolution to Ripple’s legal disputes with the SEC.
At the time of writing, XRP is trading at $1.50, up 11% in the 24-hour time frame.
Featured image from DALL-E, chart from TradingView.com
