DIGIVESTASI - WisdomTree Proposes XRP-Based ETF Amid Growing Institutional Interest in Digital Assets, WisdomTree, a global asset manager overseeing more than $100 billion (approximately IDR 1,580 trillion) in assets, has filed an application in Delaware to launch an XRP-based Exchange-Traded Fund (ETF). This move reflects the growing interest of financial institutions in Ripple's digital asset, XRP.

Previously, WisdomTree introduced the WisdomTree Physical XRP (XRPW) product on several European exchanges, including Börse Xetra, SIX Swiss Exchange, and Euronext Paris. XRPW provides low-cost, high-security exposure to XRP prices through physical backing. In the European market, XRPW is considered one of the most competitive options for investors seeking access to XRP.

Regulatory Challenges in the U.S.

Despite its success in Europe, the U.S. crypto market continues to face regulatory hurdles. The U.S. Securities and Exchange Commission (SEC) sued Ripple Labs in 2020, claiming XRP was an unregistered security. However, a landmark court ruling in July 2023 declared that XRP traded on public exchanges is not a security. While the decision is currently under appeal, it has paved the way for renewed innovation in crypto investment.

Positive Momentum and Regulatory Outlook

The optimism is further fueled by anticipated regulatory shifts in the U.S. Gary Gensler, the current SEC chair, plans to step down in January 2025, and the election of Donald Trump as U.S. president has sparked hope for a more crypto-friendly policy environment. Ripple CEO Brad Garlinghouse has expressed confidence in these developments, viewing initiatives like XRP-based ETFs as a bridge between digital assets and traditional finance.

Potential Industry Milestone

If approved by the SEC, the XRP-based ETF would mark a significant milestone for the crypto industry. It could broaden access for institutional and retail investors to the rapidly evolving market. In this race for innovation, WisdomTree joins major players such as 21Shares in introducing groundbreaking crypto investment products to the U.S. market.

This development highlights the increasing integration of blockchain technology and digital assets into mainstream financial systems, signaling a promising future for the sector.

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