WisdomTree, a prominent U.S.-based asset manager overseeing more than $113 billion in assets, taken its first step toward launching an XRP-focused Exchange-Traded Fund (ETF). The firm recently registered the "WisdomTree XRP Fund" in Delaware, signaling its intent to offer a product that provides exposure to XRP, the sixth-largest cryptocurrency by market capitalization.

The Path to an XRP ETF

This Delaware registration marks the initial step but does not yet represent a formal application to the Securities and Exchange Commission (SEC). Eleanor Terrett, a financial journalist, revealed that WisdomTree is likely to follow this move with an S-1 filing to the SEC in the coming months.

An XRP ETF would allow investors to gain exposure to the cryptocurrency without needing to purchase or store it directly. 

WisdomTree is not the only firm venturing into XRP ETFs. In October, Bitwise filed its own proposal for an XRP-focused ETF. Meanwhile, firms like Canary Capital have applied for ETFs tied to other cryptocurrencies such as Solana, Litecoin, and Hedera Hashgraph (HBAR).

The growing interest in XRP ETFs comes amidst Ripple Labs’ ongoing legal dispute with the SEC. 

Ripple’s Legal Battle and Its Impact on ETFs

Ripple Labs has been engaged in a prolonged legal battle with the SEC, which argues that XRP qualifies as a security. Although the court differentiated between institutional and retail sales of XRP, the SEC has appealed the ruling, leaving the matter unresolved.

The potential resignation of SEC Chair Gary Gensler raised speculation about the future of XRP ETFs. Gensler’s departure could bring in a leadership shift within the SEC, potentially resulting in a more favorable stance toward crypto assets, including XRP.

WisdomTree's Growing Crypto Portfolio

WisdomTree has already established itself as a key player in the crypto ETF market. The firm was among those approved to launch Bitcoin ETFs and has also introduced Ethereum ETFs in the European market. These products have seen significant investor interest, with Bitcoin ETFs in particular breaking records for inflows.

XRP recently experienced a surge, reaching $1.60 per coin, its highest price in three years, following news of potential SEC restructuring. Although the price has since settled at $1.45, this represents a seven-day increase of over 30%.