On Monday, it was Announce Asset manager WisdomTree has entered the race for a spot XRP ETF. The move comes at a pivotal time, marked by expected changes in leadership at the US Securities and Exchange Commission (SEC) and the recent election of Donald Trump.
XRP ETF orders surge
WisdomTree joins a growing list of companies, including Canary Capital, Bitwise and 21Shares, all vying for regulatory approval to launch investment vehicles tracking XRP, currently the sixth-largest cryptocurrency by market cap.
This surge in interest follows the successful approval of similar funds focused on Bitcoin (BTC) and Ethereum (ETH), which received the regulatory green light earlier this year in January and July, respectively.
However, the path to approval of XRP ETF applications was not that easy. Unlike Bitcoin and Ethereum, XRP has been engaged in a long legal battle with the Securities and Exchange Commission.
Ripple Labs, the company behind XRP, has faced scrutiny regarding the token’s classification and its sales practices to investors. This ongoing lawsuit has cast uncertainty over the regulatory status of XRP, a critical factor in the SEC’s evaluation of ETF filings.
Hopes for a new regulatory framework in the era of Trump
Despite these challenges, the recent political landscape has sparked renewed optimism. In the wake of Trump’s victory over Kamala Harris on November 5, and with the imminent departure of SEC Chairman Gary Gensler on January 20, there is speculation that a clearer regulatory framework may emerge.
This potential shift could open the door to more applications and approvals for cryptocurrency ETFs, not only for XRP but also for other digital assets like Solana and Hedera.
The expected regulatory clarity could pave the way for a spot XRP ETF market, providing investors with more accessible ways to invest in these digital assets and a potential resolution of Ripple’s legal disputes with the SEC.
At the time of writing, XRP is trading at $1.50, up 11% on the 24-hour time frame.
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