- Asset manager WisdomTree is entering the XRP ETF ring.
- Market experts have projected an approval timeline.
- Recent regulatory shifts may pave the way for approval.
Whispers of an XRP ETF have buzzed lately as traditional financial institutions set their sights on leveraging the next market gem following the success of Bitcoin and Ethereum ETFs. With fresh filings rolling in from different directions, optimism is heightened that what was once a distant dream will soon become reality.
As the buzz continues, more issuers are jumping into the fray.
WisdomTreeโs XRP ETF Pursuit
Another major player is joining the bid for an XRP ETF. On Tuesday, November 25, 2024, reports surfaced that asset manager and ETF issuer WisdomTree had registered an XRP exchange-traded fund in Delaware.
Sponsored
The move, typically the preliminary step to a filing for approval with the Securities and Exchange Commission (SEC), makes WisdomTree the latest to signal interest in launching an XRP ETF, joining the likes of Canary Capital, 21Shares, and Bitwise.
WisdomTreeโs filing comes as chatter continues to mount for potential approval, with analysts weighing on the possibility and potential timeline for clearance by regulatory authorities. Legal analyst Jeremy Hogan suggested that mid-2025 could be a plausible target for the SEC’s greenlight, building on Bitwise Chief Investment Officer Matt Houganโs optimism that a viable path to approval exists.
As optimism mounts, another key factor is further boosting hopes for the XRP ETF dream.
SEC Reform: A Pathway to XRP ETF Approval?
Stringent regulatory scrutiny is one of the biggest threats to realizing the XRP ETF dream, as the legal tussle between the SEC and XRP founder Ripple has long overshadowed the ambitions. Lack of regulatory clarity often discourages institutional interest in a token, serving as a major roadblock to approval.
However, recent shifts within the regulatory scene hint at a turning point for Ripple. With SEC Chair Gary Gensler now set to bid adieu following Trumpโs presidential win, hopes are high that the commission’s stringent approach will soften, potentially marking an end to the long-standing battles, including Rippleโs.
While there is no guarantee that Genslerโs resignation may immediately or directly impact ongoing SEC cases, market watchers believe that a more collaborative successor could prioritize an approach that promotes regulatory clarity rules over enforcement.
Such a development could influence the commissionโs case against Ripple, potentially leading to a settlement or a less aggressive approach that lessens its regulatory troubles and in turn, enhances the prospects for its ETF ambitions. Ripple founder Brad Garlinghouse also believes that an XRP ETF is inevitable, expressing confidence in its potential benefits to the ecosystem.
On the Flipside
- Institutional interest in a Solana ETF is also growing.
- At press time, XRP is trading at $1.47. While the token is down 2% in the last 24 hours, itโs had an impressive run in recent weeks, up 27% and 178% in the last seven and thirty days, respectively.
- While Ripple achieved a partial victory in its legal battle with the SEC earlier this year, the commission’s subsequent appeal continues to prolong the case.
Why This Matters
With more institutions rallying for an XRP ETF, momentum is building around its prospects. A successful exchange-traded fund approval and launch could significantly enhance the token’s exposure, strengthen its market position, and drive broader industry adoption.
Read this article to discover how the recent U.S. political shift boosts the chances of anย ETF for Ripple:
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