WisdomTree Files XRP-Based ETF To SEC

WisdomTree submitted an XRP-based ETF to the SEC (Photo; Doc. Cryptorank)

JAKARTA - WisdomTree, one of the largest asset managers in the world, recently proposed an XRP-based ETF. This move is one of the signals that institutional demand for digital assets continues to increase, especially amid significant changes in the United States regulatory sector. WisdomTree, through its subsidiary, WisdomTree Digital Commodity Services LLC, submitted the S-1 form to the United States Securities and Exchange Commission (SEC) to launch the WisdomTree XRP Fund. If approved, this ETF will be listed on the BZX Cboe Stock Exchange.

XRP-based ETF will allow institutional investors to have direct exposure to XRP without the need to store assets physically. In this filing, WisdomTree collaborates with Bank of New York Mellon Corp. as a fund manager, accountant, and transfer agent.

According to Dovile Silenskyte, Director of Digital Asset Research WisdomTree, XRP adoption by institutional investors will provide significant diversification to crypto portfolios. In addition, XRP has a smaller market cap than Bitcoin and Ethereum, potentially offering larger yields amid a downward trend in profits for these main assets.

WisdomTree isn't the only company targeting the XRP-based ETF market. Several other asset managers, such as 21Shares, Bitwise, Grayscale Investments, and Canary Capital, have also submitted similar proposals to the SEC. These measures are getting more intensive after the announcement that SEC Chairman Gary Gensler will step down from office.

Gensler was previously known for its tough stance on Ripple Labs, the company behind XRP, in a legal case that has caught the attention of the crypto market over the past few years. With the possibility of a change in leadership at the SEC, many market participants predict that lawsuits against Ripple could be discontinued, which will have a positive impact on the price of XRP.