Ripple Labs’ legal disputes and regulatory modifications may influence the future prospects of XRP investment products.
WisdomTree has formally submitted a Form S-1 registration statement to the Securities and Exchange Commission for a spot XRP exchange-traded fund, thereby formalizing its entry into the expanding community of asset managers that are attempting to introduce XRP-based investment products.
Bank of New York Mellon will be the administrator of the proposed trust, as indicated in the December 2 filing. The anticipated exchange-traded fund (ETF) would monitor the price of XRP, which is presently the third-largest crypto asset by market value.
WisdomTree has joined a growing group of asset managers in the United States who are interested in introducing XRP-based funds. This group includes Bitwise and Canary Capital, both of which filed for XRP ETFs earlier this year. The asset manager has not yet designated a ticker symbol or exchange venue for the proposed fund.
The filing is in response to WisdomTree’s recent establishment of a trust entity in Delaware for the proposed fund. The SEC’s position on XRP remains ambiguous, particularly in light of Ripple Labs’ ongoing legal disputes with the regulator. Consequently, the company elected to act.
The imminent resignation of SEC Chair Gary Gensler, according to industry observers, could potentially result in a reassessment of the agency’s litigation strategy, which could create a more favorable environment for XRP ETFs under future leadership.
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