Asset manager WisdomTree has officially withdrawn its S-1 registration statement for a spot XRP ETF, according to a filing on Tuesday. WisdomTree, a major player in the exchange-traded fund industry, had been competing to launch one of the first spot XRP ETFs in the United States.
WisdomTree’s withdrawal marks a significant development in the ongoing race among asset managers to secure regulatory approval for XRP exchange-traded products. Multiple firms have submitted applications to the U.S. Securities and Exchange Commission seeking approval to offer spot XRP ETFs to retail and institutional investors.
WisdomTree is among several major asset managers that have pursued spot XRP ETF approvals in recent months. Other firms, including Bitwise, Grayscale, and others have also filed applications for similar products.
SEC approval for spot XRP ETFs has remained uncertain as the agency continues to evaluate applications.
Ripple, the company behind XRP, has been working to build support for these financial products despite ongoing regulatory scrutiny. A spot XRP ETF could provide easier access to the cryptocurrency for mainstream investors through traditional brokerage accounts.
WisdomTree did not provide a detailed public statement explaining the reasons for its withdrawal, but the SEC did upload a letter signed by the firm stating their decision to withdraw its application. Companies typically withdraw ETF applications when they determine approval is unlikely or when business priorities change. Such withdrawals are relatively uncommon among major asset managers pursuing high-profile cryptocurrency ETF products.
XRP has maintained a significant position in the cryptocurrency market by capitalization despite regulatory uncertainties surrounding its status. Approval of spot XRP ETFs would represent a major milestone for the cryptocurrency and could potentially increase retail investor exposure to the digital asset.
Other asset managers remain actively pursuing spot XRP ETF approvals. Bitwise filed its XRP ETF application in 2024 and continues to work through the SEC review process. Grayscale has also submitted an application as part of its broader push into spot cryptocurrency ETFs following favorable SEC decisions on Bitcoin and Ethereum spot ETFs.
WisdomTree’s withdrawal does not necessarily indicate rejection by the SEC but rather a voluntary decision by the firm.
Asset managers sometimes withdraw applications to preserve resources, reassess market conditions, or pursue alternative strategies. WisdomTree may continue exploring cryptocurrency products through different approaches or timelines.
SEC approval standards for spot cryptocurrency ETFs have evolved significantly following the approval of Bitcoin and Ethereum spot ETFs. Regulators have become more receptive to these products but continue to evaluate each application based on factors including market surveillance, investor protection, and custody arrangements.
See also: Morgan Stanley Files S-1s for Bitcoin and Solana ETFs as Wall Street Crypto Push Accelerates
Spot XRP ETF approval could reshape how retail investors access XRP without requiring cryptocurrency exchange accounts or self-custody of private keys. Traditional brokerage platforms could offer these products alongside stocks and bonds, simplifying the investment process for mainstream audiences.
Only firms with sufficient resources and regulatory expertise can sustain the lengthy approval process. WisdomTree may also reconsider XRP ETF applications at a future date if circumstances change.
If you’re reading this, you’re already ahead. Stay there by joining Dipprofit’s private Telegram community.
Discover more from Dipprofit
Subscribe to get the latest posts sent to your email.
