This filing is seen as a precursor to a broader submission with the U.S. Securities and Exchange Commission (SEC), joining companies like Bitwise, Canary Capital, and 21Shares in their push for XRP-related ETFs.

While the SEC has yet to approve any XRP ETF applications, this filing comes at a critical juncture for the cryptocurrency and its legal and regulatory environment.

The Filing, Source: Delaware

 

XRP has performed well after Trump’s electoral victory, up 100% in the last month.

Source: BNC XRPLX 

XRP’s Ongoing Legal Battle

Ripple, the San Francisco-based company behind XRP, has been locked in a legal battle with the SEC for years. In a partial victory in July 2023, a judge ruled that XRP was not a security in certain circumstances, a decision that invigorated the cryptocurrency’s community and sparked renewed optimism for its mainstream adoption.

However, the legal drama is far from over. The SEC filed an appeal against the ruling on October 2, 2024, just before the court-imposed deadline. The regulator was granted an extension to submit its opening brief, now due January 15, 2025.

The outcome of this appeal could significantly influence the future of XRP and related financial products like ETFs. Analysts suggest that the resolution may hinge on broader political and regulatory changes in the United States.

A Political Shakeup: Trump’s Crypto-Friendly Platform

The U.S. regulatory environment for cryptocurrency is undergoing a potential sea change following Donald Trump’s victory in the 2024 presidential election. The President-elect has pledged to transform the U.S. into a global leader in Bitcoin, crypto, and blockchain technology, criticizing the current administration’s handling of the sector under President Biden and SEC Chairman Gary Gensler.

Trump’s transition team has hinted at sweeping financial regulatory reforms that could include appointing conservative leaders to key positions in the Treasury and replacing Gensler at the SEC. While no specific statements have been made regarding Ripple’s case, analysts believe the incoming administration could take a more lenient approach to crypto regulation.

Should Trump’s administration choose to drop existing lawsuits against Ripple or adopt a more favorable stance toward the cryptocurrency industry, it could accelerate the approval of XRP-related ETFs. Such a shift would not only validate XRP’s legitimacy but also open the door for broader institutional adoption.

Why XRP ETFs Matter

An XRP ETF would provide retail and institutional investors with an easier, regulated way to gain exposure to the cryptocurrency, potentially driving significant capital inflow. XRP’s blockchain technology, focused on facilitating cross-border payments, makes it a unique asset in the crypto space.

WisdomTree’s move reflects growing confidence in XRP’s long-term viability and highlights the race among asset managers to establish themselves in the crypto ETF space. By joining early applicants such as Bitwise and 21Shares, WisdomTree is positioning itself to capitalize on a potential regulatory breakthrough.

The Path Forward

As Ripple’s legal saga continues, the future of XRP ETFs hinges on multiple factors: the outcome of the SEC’s appeal, Trump’s approach to cryptocurrency regulation, and the SEC’s willingness to embrace the evolving financial ecosystem.

If the incoming administration delivers on its promises, the landscape for XRP could change dramatically, paving the way for institutional products like ETFs and redefining the U.S. role in the global crypto economy.

For now, WisdomTree’s filing adds another layer of intrigue to XRP’s already complex narrative—a narrative that could shape the future of cryptocurrency regulation and adoption.

Troy Miller, the sharpest pen in crypto journalism, dives deep into the intersection of finance, policy, and blockchain. When the stakes are high, Troy has the story.