WisdomTree recently announced launching an XRP-based ETF (exchange-traded fund) in the US.
If passed, it would become the first XRP-centric ETF in the US. The only cryptos with an ETF in the US are Bitcoin and Ethereum. The asset management firm plans on registering an entity in Delaware to release the third crypto-based ETF in the nation.
WisdomTree has signaled its intent to file with the SEC (Securities and Exchange Commission) for the ETF. Registering a Delaware-based entity is a crucial step for WisdowmTree as it allows the company to submit its proposal.
However, it is expected to be a long and harsh road from thereon. The asset management company must gain the SEC’s approval to launch the ETF. Despite BTC and ETH already doing so, the case will be rough for XRP, given its legal history with the SEC.
On the other hand, WisdomTree is undertaking the initiative as part of its strategy for product diversification and exploring the crypto market. The company has previously launched crypto-based ETFs for both Bitcoin and Ethereum.
WisdomTree would use the expertise and experience gained from the same to elevate the digital asset space. A potential approval would provide traditional investors with a regulated and convenient option to explore XRP.
As one of the leading digital assets, XRP boasts a massive market cap and use cases. An XRP-based ETF can also allow other cryptocurrencies to be added to traditional investment portfolios.
Crypto enthusiasts and investors will closely follow the ETF, as it has the potential to further mainstream crypto. Given the volatile environment surrounding crypto in the US, the ETF can set a favorable precedent.
Despite Bitcoin nearing 100,000 dollars after Donald Trump’s victory, many people see crypto as risky. ETFs emerge as the ideal tool for such investors to explore crypto in a sanctioned manner. The outcome of the proceedings can influence the integration and adoption of cryptos into traditional global financial circles.
