In summary
- WisdomTree has officially filed for an XRP ETF, marking a step towards gaining regulatory approval, amid growing optimism about the future of the Cryptocurrency.
- XRP, the sixth-largest digital asset, has been in the news due to the SEC’s lawsuit against Ripple for alleged sales of unregistered securities, but the possible change in direction of the SEC under new leadership has boosted investor confidence. .
- WisdomTree’s filing comes at a time of boom for XRP, which hit a three-year high of $1.60, fueled by speculation about the SEC’s future restructuring.
New York asset manager WisdomTree is the latest firm to file for an XRP ETF, amid optimism about the asset’s future that helped propel it last week to a price not seen since 2021.
Documentation filed with the state of Delaware is the first step in obtaining approval for said product. WisdomTree will have to apply to Wall Street’s main regulator, the Securities and Exchange Commission (SEC), for the process to officially begin.
XRP is a digital currency created by the founders of the fintech company Ripple. It is the sixth largest digital asset by market capitalization and is used to move money across borders.
The asset has been in the news because the SEC has been involved in a lawsuit with Ripple since 2020, when it filed a $1.3 billion lawsuit against the company. He alleged that Ripple and its founders sold unregistered securities in the form of XRP to raise money.
But Gary Gensler, the current SEC chairman, announced he would resign in January, leading some industry observers to think the regulator will be friendlier toward the digital asset industry after his departure. Under Gensler’s watch, he has sued several cryptocurrency companies, including Ripple.
And investor optimism is showing: WisdomTree’s filing comes as XRP soars in price. The asset hit a three-year high on Friday of $1.60 on news of the SEC’s upcoming restructuring.
The SEC approved Bitcoin exchange-traded funds (ETFs) and their Ethereum counterparts this year. Both have seen large capital inflows, but Bitcoin products in particular have broken records, led by BlackRock’s iShares fund.
WisdomTree is one of the asset managers that received the green light from the regulator to launch a Bitcoin ETF. It also has an Ethereum ETF listed in Europe.
Now, along with other companies including 21Shares and Bitwise, it hopes to gain approval to launch other cryptocurrency products in the US.
Edited by Andrew Hayward
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