WisdomTree Funds, an asset management firm headquartered in New York, has registered in Delaware for an XRP exchange-traded fund (ETF) as of Nov. 25. This marks a significant step in the company’s broader strategy to submit its application to the U.S. Securities and Exchange Commission (SEC).
Joining the ranks of early XRP ETF applicants like Bitwise, Canary Capital, and 21Shares, WisdomTree enters a competitive landscape. However, at the time of writing, the SEC has yet to approve any applications for such funds.
XRP’s Legal Landscape: A Crucial Turning Point
WisdomTree’s decision to pursue an XRP ETF coincides with a transformative period for XRP. Ripple, the company behind the cryptocurrency, secured a partial victory in its extended legal battle with the SEC when a federal judge ruled in July 2023 that XRP was not a security in certain contexts.
In response, the SEC filed an official appeal on Oct. 2, 2024, meeting the court’s submission deadline. This appeal was followed by a successful request to postpone the opening brief until Jan. 15, 2025, signaling continued uncertainty for Ripple and XRP.
Top-down Regulatory Reform Under New Leadership
The regulatory environment for cryptocurrencies in the U.S. could undergo dramatic changes following Donald Trump’s win in the 2024 presidential election. While his transition team has not directly addressed Ripple’s lawsuit, experts anticipate a shift in how the federal government approaches cryptocurrency oversight.
Trump campaigned on positioning the U.S. as a global leader in Bitcoin, crypto, and blockchain technology, while openly criticizing the Biden administration and SEC Chair Gary Gensler for their handling of the sector.
Once Trump assumes office, it is expected that key leadership roles in financial governance will see conservative appointees, with Gensler likely to leave the SEC. This new regulatory framework could lead to the dismissal of ongoing lawsuits against firms like Ripple, clearing the way for innovations such as an XRP ETF to progress faster than many industry watchers predict.
If these changes materialize, the U.S. could enter a new era of cryptocurrency regulation, with XRP potentially positioned to make significant gains in the market.
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