WisdomTree, a prominent player in the ETF market, has officially filed for the launch of a spot exchange-traded fund (ETF) backed by XRP. The filing was submitted on Dec. 2, making WisdomTree the fourth company in the U.S. to take this step.
The proposed product, known as the WisdomTree XRP Fund, aims to give investors direct exposure to XRP’s market price by offering shares listed on the Cboe BZX Exchange. The fund’s structure will initially employ a cash-create mechanism for share creation and redemption, with an in-kind model potentially being introduced later, subject to additional regulatory approvals.
Coinbase Affiliates to Serve as XRP Custodian and Prime Execution Agent
The filing highlights that the custodial and execution roles for the proposed fund will be managed by Coinbase affiliates. According to WisdomTree, Coinbase plays a vital role in the U.S. ecosystem for spot XRP ETFs, as it also acts as the XRP custodian for other similar products.
“Coinbase serves as the XRP custodian and prime execution agent for several competing exchange-traded XRP products and … plays a critical role in supporting the US spot XRP exchange-traded product ecosystem,” WisdomTree’s filing stated.
This collaboration mirrors WisdomTree’s existing reliance on Coinbase for its Bitcoin ETF, the WisdomTree Bitcoin Fund (BTCW), which launched alongside other spot Bitcoin ETFs earlier this year on Jan. 11.
Other Spot XRP ETF Filings Include Bitwise, Canary Capital, and 21Shares
WisdomTree’s entry into the race for a spot XRP ETF follows filings by three other firms: Bitwise, Canary Capital, and 21Shares.
Bitwise was among the earliest, submitting its S-1 filing for the Bitwise XRP ETF on Oct. 2. The company had previously established itself as a pioneer in the Bitcoin ETF space with the launch of its Bitwise Bitcoin ETF (BITB) in January.
Shortly after, Canary Capital entered the scene with its Canary XRP ETF filing on Oct. 9. Meanwhile, 21Shares joined the competition on Nov. 1 with its Core XRP Trust, co-issued with ARK Invest. Unlike direct XRP funds, the Core XRP Trust allows investors to gain indirect exposure to XRP’s market performance.
With the SEC reviewing these applications, the competition for the first approved spot XRP ETF continues to intensify, signaling growing interest and confidence in XRP-based investment products.
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