WisdomTree has filed an application with the United States Securities and Exchange Commission (SEC) to launch spot exchange-traded funds backed by XRP. The firm submitted a Form S-1 filing to the SEC on Monday, becoming the fourth company in the US to do so.
According to the filing, the investment instrument will carry the name WisdomTree XRP Fund to provide investors an opportunity to make a profit from XRP without holding the asset. More so, with the approval of the SEC, the XRP ETF will be listed on the Cboe BZX Exchange, allowing investors to gain exposure to the price of XRP through issuing shares.
Furthermore, the initiative will also create and redeem shares through the cash-create system or in exchange for cash. Meanwhile, in the filing, WisdomTree revealed that Coinbase plays an important role in supporting the US spot XRP ETF ecosystem.
The firm disclosed that the cryptocurrency exchange is the prime execution agent and XRP custodian. Similarly, WisdomTree depends on Coinbase as the custodian of its WisdomTree Bitcoin Fund (BTCW).
Recall that WisdomTree made a record in January after the SEC ratified its application alongside nine other filings for spot Bitcoin ETFs. The approval created a pathway for the exodus of traditional investors into the digital assets landscape, which has played a massive role in the recent exponential growth of the sector.
Following the approval of BTC ETFs, the SEC also approved various applications for Ether ETFs, further supporting the sector’s growth. Currently, the cryptocurrency market is worth more than $3.44 trillion, according to Coinmarketcap, with BTC hitting an all-time high of $99,665 on November 22, 2024.
XRP Becomes Third Largest Cryptocurrency by Market Capitalization
It’s worth mentioning that the filing of WisdomTree coincides with when XRP regained its position as the third-largest cryptocurrency by market cap. The cryptocurrency slipped outside the top three in December 2020 after the SEC sued Ripple, alleging that the firm facilitated an “unregistered digital asset securities offering.”
Thereafter, the market capitalization of XRP tanked, losing more than $15 billion. This event gave room for USDT, BNB, SOL, and USDC room to bite more market share and overtake the asset.
However, in the last 30 days, the value of XRP has soared by 424% as the asset recorded a massive inflow in November. This significant price rally drove the asset right behind ETH and BTC in the top three.
Likewise, Google Trends recently disclosed that XRP-related searches soared past inquiries related to crypto. The metrics indicated that users are searching more about XRP than crypto in recent times.