WisdomTree, a well-known asset manager handling $100 billion globally, has taken a big step toward launching an $XRP exchange-traded fund (ETF).
The company recently registered the “WisdomTree XRP Fund” in Delaware on 25 November.
This filing, confirmed by journalist Eleanor Terrett, is a sign that WisdomTree will soon submit its application to the US Securities and Exchange Commission (SEC).
The race to bring $XRP ETFs to market is heating up, with companies like 21Shares, Bitwise, and Canary Capital also competing.
An $XRP ETF would allow investors to trade the altcoin more easily, just like they trade stocks, which could bring more attention and legitimacy to the cryptocurrency. However, the SEC has not yet approved any $XRP ETFs.
Recent reports show that the SEC has been in discussions with applicants for Solana ETFs, another type of crypto fund. Industry experts see this as a sign that progress is being made. Firms may soon file further documents required for ETF approval.
The timing of WisdomTree’s application is significant. Many believe the upcoming US presidential election in 2024 could lead to changes in SEC leadership.
Some experts suggest that a new administration might take a more supportive approach to crypto ETFs.
While there are no guarantees, the prospect of regulatory change has encouraged firms like WisdomTree to move forward.
Ripple’s legal battles with the SEC are also a key part of the story. A partial court victory for Ripple in July 2023 declared that $XRP is not a security in some cases.
This ruling boosted confidence in $XRP and its potential as a mainstream financial asset.
Launching UK’s first tokenised fund
In the UK, Ripple has partnered with Archax and ABRDN to launch the country’s first tokenised money market fund. This fund is based on ABRDN’s $3.8 billion US Dollar Liquidity Fund (Lux).
Ripple’s XRP Ledger provides the technology behind the tokenisation process, making it easier to trade and settle the fund’s assets. Ripple has also invested $5 million into tokens tied to the fund.
Tokenised funds are a new way to manage investments using blockchain technology. They break down assets into digital tokens, which can be securely traded or held.
This makes the process faster and more transparent compared to traditional methods.
Archax, which is the first UK financial company to be regulated for digital asset trading, is handling the tokenisation and custody of the fund’s assets.
According to Archax CEO, Graham Rodford, institutional clients are increasingly demanding reliable tokenization services, and this project aims to meet that need.
The senior executive at ABRDN, Duncan Moir, said the use of XRPL improves efficiency and transparency for investors. RippleX’s Markus Infanger added that tokenising real-world assets like money market funds is driving momentum in the on-chain economy.
This fund marks an important milestone, showing how blockchain can work alongside traditional financial systems.
Experts predict that the market for tokenised assets could grow to $16 trillion by 2030, highlighting the potential of this technology.
Ripple’s latest initiatives show how blockchain is making its way into traditional finance. Tokenised money market funds and ETFs are just two examples of how cryptocurrency technology is creating more opportunities for investors and institutions.
The success of these projects depends on changing regulations, especially in the US, where the SEC has been cautious about approving crypto ETFs.
However, Ripple’s recent legal victory and growing interest in blockchain solutions suggest that attitudes are shifting.
