XRP ETFs: Latest Developments You Need to Know

Bittime - The race to launch XRP ETFs is heating up, with a number of large asset managers submitting applications to the US Securities and Exchange Commission (SEC).

This ETF aims to provide investors with direct exposure to the XRP coin, one of the largest digital assets by market capitalization. With more and more XRP ETF applications, how is it progressing and what are the implications for Ripple XRP?

Asset Managers Seek to Launch XRP ETF

WisdomTree is one of the newest asset managers to file an S-1 application with the SEC to launch an XRP ETF. If approved, shares of the WisdomTree XRP Fund will be listed on the Cboe BZX Exchange with BNY Mellon as fund administrator. The ETF will track the spot price of the XRP coin using independent reference rates from major trading platforms.

Read also: XRP Price Prediction Today February 19

In addition to WisdomTree, 21Shares is also proposing the Core XRP Trust, a spot-based ETF that allows investors to gain indirect exposure to XRP coin. Coinbase Custody Trust Company has been appointed as the custodian of these fund assets. The ETF, if approved, will be traded on the Cboe BZX Exchange, providing new investment alternatives for market participants.

This effort marks a significant development as WisdomTree and 21Shares join Bitwise and Canary Capital on the list of companies seeking SEC approval for the XRP ETF.

Bitwise's optimism towards XRP Coin

Bitwise became the first asset manager to apply for a spot-based XRP ETF. Despite regulatory challenges, Bitwise remains confident in the great potential of Ripple XRP. Matt Hougan, Bitwise's Chief Investment Officer, believes that XRP has not reached its full potential due to the SEC's lawsuit against Ripple.

However, XRP Ledger technology and strong community support are considered key factors supporting the institutional adoption of XRP coin.

Hougan also highlighted Bitwise's five-year experience in fighting for Bitcoin ETFs as proof of the company's seriousness in presenting digital ETF products. The success of the Bitcoin ETF opens up greater opportunities for XRP ETFs to gain approval in the future.

Ripple CEO Highlights Institutional Interest

Brad Garlinghouse, CEO of Ripple, also highlighted the increased institutional interest in XRP coin. He refers to the recent ETF filings by 21Shares, Canary Capital, and Bitwise as evidence of the growing demand for XRP-based financial products.

According to Garlinghouse, XRP ETFs have the potential to attract large capital flows, as was the case with Bitcoin ETFs, which managed to attract more than $33 billion in 2024 alone.

In addition, he praised Grayscale's efforts in transforming its Digital Large Cap Fund—which includes the XRP coin—into a spot-based ETF. Such basket ETFs are considered capable of attracting more investors and increasing the liquidity of the Ripple XRP market.

Read also: Grayscale Submits Official XRP and Dogecoin ETFs to the SEC

Regulatory Challenges and Future Prospects

Despite much optimism, regulatory obstacles remain a major challenge for the XRP ETF. The SEC's appeal of the Ripple case verdict adds uncertainty to the XRP ETF approval schedule.

However, many in the digital asset community hope for greater regulatory clarity in the future, especially if there is a change in leadership at the SEC.

With increasing institutional interest and various efforts from well-known asset managers, the XRP ETF has the potential to become a significant digital investment instrument. If the SEC gives the green light, the XRP coin could experience a surge in adoption and attract a new wave of capital, solidifying its position as one of the main digital assets on the market.

FAQ

What is an XRP ETF?

The XRP ETF is an investment product that allows investors to gain exposure to XRP without having to buy or store it directly. This ETF is traded on the exchange and follows the price of XRP in the market.

Why is the XRP ETF important for investors?

The XRP ETF provides easier and safer access for institutional and retail investors to invest in XRP. In addition, this ETF can increase the liquidity and adoption of XRP in traditional financial markets.

Has the XRP ETF been approved by the SEC?

Currently, several asset managers have submitted XRP ETF applications to the SEC, but there has been no official approval. The regulatory process is still ongoing, and the market is awaiting further decisions.

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References

coinedition.com, XRP ETFs: Big Firms Bet on the Future of Crypto Investments, accessed February 19, 2025.

Author: AWW