Emily Walker
On Monday, asset manager WisdomTree made headlines by announcing its intent to pursue a spot XRP ETF. This announcement comes at a crucial juncture, coinciding with expected changes in leadership at the US Securities and Exchange Commission (SEC) and the recent election of Donald Trump.
Rise in XRP ETF Applications
WisdomTree joins a host of other firms like Canary Capital, Bitwise, and 21Shares, all seeking regulatory approval to establish investment products linked to XRP, which ranks as the sixth largest cryptocurrency by market cap.
The growing interest in XRP ETFs follows the successful launch of similar funds for Bitcoin (BTC) and Ethereum (ETH), which received regulatory approval earlier this year in January and July.
However, obtaining approval for XRP ETFs has proven to be more complex. XRP is currently involved in a lengthy legal dispute with the SEC, unlike Bitcoin and Ethereum.
Ripple Labs, the creator of XRP, is facing legal questions regarding how the token is classified and the methods used to sell it to investors. This ongoing litigation brings uncertainty regarding XRP’s regulatory status, a crucial aspect for the SEC when reviewing ETF applications.
Renewed Regulatory Hopes with Trump’s Election
In spite of these obstacles, the political climate has sparked new hope. Trump’s recent win against Kamala Harris and the anticipated departure of SEC Chair Gary Gensler may lead to clearer regulations.
This potential change might enable more cryptocurrency ETF applications, not only for XRP but also for other digital currencies like Solana and Hedera.
Such regulatory clarity could facilitate the development of a spot XRP ETF market, creating more accessible investment opportunities for those interested in this digital asset and possibly leading to a resolution of Ripple’s disputes with the SEC.
As of now, XRP is priced at $1.50, marking an 11% increase within a 24-hour period.
Featured image from DALL-E, chart from TradingView.com