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WisdomTree Submits S-1 Application for XRP ETF with US SEC
12/02/2024 22:25
The demand for XRP among institutional investors has seen several fund managers file for spot ETF approval with the US SEC.
Key Notes
- WisdomTree has joined other fund managers led by 21Shares, Bitwise, Grayscale Investments, and Canary Capital seeking to offer spot XRP ETF.
- XRP price has surged significantly in the past five weeks fueled by rising demand from whale investors.
WisdomTree Digital Commodity Services LLC, a subsidiary of WisdomTree Investment Inc (NYSE: WT), has submitted an application for the WisdomTree XRP Fund to the US Securities and Exchange Commission (SEC) through an S-1 filing. The New York-based asset management firm, with more than $113 billion in assets under management (AUM), intends to list its WisdomTree XRP Fund on the Cboe BZX Exchange.
According to the SEC filing, WisdomTree has not yet set the ticker for the XRP trust in addition to the expected sponsor fee. Consequently, the investment firm is likely to update its SEC filing with time to increase the odds of approval.
The Bank of New York Mellon Corp. (NYSE: BK) will serve as the trustee, fund accountant, and transfer agent for the trust upon approval by the US SEC.
A Growing Demand for XRP
The filing of the WisdomTree XRP Fund S-1 application with the US SEC follows last month’s launch of the WisdomTree Physical XRP ETP, which will both offer investors secure access to the XRP market. Moreover, the WisdomTree Physical XRP ETP is fully backed by XRP, which will give non-US institutional investors a chance to tap into the altcoin.
According to Dovile Silenskyte, the director of digital assets research at WisdomTree, the adoption of XRP XRP $2.67 24h volatility: 39.0% Market cap: $151.45 B Vol. 24h: $60.35 B by institutional investors will significantly improve crypto portfolios.
Moreover, XRP has a lower market cap compared to Ethereum ETH $3 608 24h volatility: 3.0% Market cap: $434.32 B Vol. 24h: $47.59 B and Bitcoin BTC $95 532 24h volatility: 1.9% Market cap: $1.88 T Vol. 24h: $92.17 B , which are likely to register less profits due to declining returns.
In addition to WisdomTree, several other fund managers have sought to offer an XRP ETF in the US market ahead. Some of the notable fund managers that have filed for a spot in XRP ETF include 21Shares, Bitwise, Grayscale Investments, and Canary Capital.
The growing demand for XRP by institutional investors follows the recent resignation announcement by the current SEC chair Gary Gensler.
The imminent change of the US SEC’s leadership will most likely drop legal charges against Ripple Labs, which is considered bullish for XRP.
Market Implications
The growing demand for XRP among institutional investors has fueled the ongoing bullish outlook. As Coinspeaker noted, the large-cap altcoin, with a fully diluted valuation of about $241 billion, outperformed other top altcoins, led by Solana (SOL), to become the third largest cryptocurrency excluding stablecoins.
From a technical analysis standpoint, XRP’s price is well-positioned to rally beyond its all-time high, which was set in early 2018. Moreover, XRP price has already broken out of a macro triangular pattern, which signals the onset of a fresh bull cycle. Additionally, the weekly and monthly Relative Strength Indexes (RSI) have all surged beyond the 70 level, indicating the bulls are in control.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
