Global exchange-traded fund (ETF) issuer and asset manager Tree of wisdom It has officially filed an S-1 application for a spot XRP ETF with the US Securities and Exchange Commission (SEC), becoming the fourth asset manager in the US to seek index fund approval.
Growing interest in XRP ETFs
The proposed fund, called the WisdomTree XRP Fund, aims to provide investors with exposure to XRP Price movements Through shares listed on the Cboe BZX exchange. The fund plans to use a cash creation method to create and redeem shares, with the possibility of adopting an in-kind model pending further approvals.
Coinbase Global affiliates will act as lead executor and custodian for XRP, having previously collaborated with WisdomTree on the Bitcoin ETF launched in January this year. In it DepositWisdomTree noted Coinbase’s importance in the US XRP ETF ecosystem, saying:
Coinbase serves as the custodian of XRP and the lead execution agent for many competing exchange-traded XRP products, and as such, plays a critical role in supporting spot XRP in the US. A product that is traded on an exchange Ecosystem.
Other companies such as Bitwise, Canary Capital, and 21Shares have also applied for spot XRP ETFs. Bitwise was the first to place an order in October, followed by Canary Capital on October 9 and 21Shares with Core XRP Trust on November 1.
XRP is approaching an all-time high
The introduction of the XRP ETF comes on the heels of a significant surge in the token’s prices, which recorded a 41% increase in just 24 hours and a massive 430% surge over the past month, boosting its value. Market value To about $153 billion.
Currently trading at $2.71, XRP has seen a significant 321% increase in trading volume, indicating strong investor interest. The token is now just 23% below its all-time high of $3.40, which was reached during the cryptocurrency boom in 2018.
This upward momentum is partly due to recent political developments, especially the electoral victory of President-elect Donald Trump, who pledged to implement major changes in the regulation of cryptocurrencies.
Trump’s promises to resign have been reinforced advertisement SEC Chairman Gary Gensler, whose last day in office will coincide with Trump’s inauguration on January 20.
The Securities and Exchange Commission (SEC) has been a focal point of controversy for XRP over the past three years, following a lawsuit alleging that Ripple Labs, the company behind XRP, violated securities laws by treating its tokens as securities. Unregistered finance.
However, with shifts in leadership at the SEC and the Commodity Futures Trading Commission (CFTC), there is a growing sense of optimism about the potential conclusion of Ripple’s long legal battle with the SEC.
Featured image of DALL-E, chart from TradingView.com