The race to launch XRP-focused exchange-traded funds (ETFs) is heating up, with top asset managers submitting applications to the U.S. Securities and Exchange Commission (SEC).
These ETFs aim to offer institutional and retail investors direct exposure to XRP, the fourth-largest cryptocurrency by market cap, through a regulated financial product. Here’s everything you need to know about the emerging XRP ETF landscape and what it means for the crypto market.
Asset Managers Seek to Launch XRP ETFs
WisdomTree is the most recent asset manager to file an S-1 application with the SEC to launch an XRP ETF. Notably, the WisdomTree XRP Fund shares will be listed on the Cboe BZX Exchange, with BNY Mellon serving as the fund’s administrator. The ETF will track XRP’s spot price using an independent reference rate sourced from major trading platforms.
21Shares has also filed for its Core XRP Trust, a spot-based ETF designed to provide indirect exposure to XRP. Coinbase Custody Trust Company is set to act as the custodian for the fund’s assets. If approved, the ETF will trade on the Cboe BZX Exchange.
These filings mark significant milestones as WisdomTree and 21Shares join Bitwise and Canary Capital in the growing list of firms seeking SEC approval for XRP ETFs.
Bitwise Remains Optimistic About XRP
Bitwise, the first asset manager to apply for a spot-based XRP ETF, remains confident in XRP’s potential despite regulatory challenges. According to Matt Hougan, the company’s Chief Investment Officer, XRP has yet to unleash its full potential due to the SEC v. Ripple lawsuit.
Hougan sees the XRP Ledger’s technology and strong community support as key factors that make it well-suited for institutional adoption.
Bitwise’s persistence in pursuing ETFs, demonstrated by its five-year campaign for a Bitcoin ETF, suggests optimism about eventual approval under a more favorable regulatory environment.
Ripple CEO Highlights Institutional Interest
Ripple CEO Brad Garlinghouse has also emphasized the growing institutional interest in XRP. He pointed to the recent filings by 21Shares, Canary Capital, and Bitwise as evidence of demand for XRP-based financial products.
Garlinghouse believes these ETFs could attract substantial capital inflows, similar to Bitcoin ETFs, which have already pulled in over $33 billion in 2024 alone.
Garlinghouse also praised Grayscale’s efforts to convert its Digital Large Cap Fund, which includes XRP, into a spot-based ETF. He noted that basket ETFs could bring more investors into the crypto ecosystem while boosting XRP’s market liquidity.
Regulatory Hurdles and Future of XRP ETFs
The SEC’s recent appeal of the Ripple ruling has added uncertainty to the timeline for XRP ETF approvals. However, Ripple and the broader crypto community remain optimistic about regulatory clarity under the Trump-led administration, which could open the door for XRP ETFs.
Gary Gensler is already stepping down, and Trump has appointed Paul Atkins as the SEC chairman.
With growing interest from institutional players and leading asset managers, the race to launch XRP ETFs underscores the cryptocurrency’s appeal as a long-term investment. As the SEC reviews these applications, the crypto market awaits a potential new wave of capital flowing into XRP and other digital assets.
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