As a seasoned analyst with over two decades of experience in the financial markets, I must admit that the recent move by WisdomTree to file for a spot XRP ETF is not only intriguing but also quite promising. Having closely followed the evolution of Bitcoin ETFs and their subsequent approval, it’s fascinating to witness another significant player like WisdomTree diving into the world of altcoins.
WisdomTree, an early pioneer in offering U.S.-listed Bitcoin spot exchange-traded funds (ETFs), has applied for authorization to introduce an XRP-backed spot ETF in the United States.
As an analyst, I am sharing that on December 2nd, I found that WisdomTree has joined the ranks of three other U.S. companies by submitting a Form S-1 filing to the United States Securities and Exchange Commission (SEC). This filing is for a spot XRP (XRP) exchange-traded fund (ETF), a financial product that I follow closely.
The recently introduced WisdomTree ETF called the WisdomTree XRP fund intends to offer investors a way to track the value of XRP by issuing tradeable shares, which will become available for trading on the Cboe BZX Exchange.
Upon securing approval from the SEC, the new fund may opt to generate and retire shares via the cash-creation process, or alternatively exchange shares for cash. The in-kind model could require additional approvals down the line.
Coinbase affiliates to serve as prime execution agent and XRP custodian
Based on the documentation, it appears that the main execution agent and the entity responsible for holding XRP are both connected entities under the umbrella of U.S.-based digital currency exchange, Coinbase Global.
According to WisdomTree’s filing, Coinbase functions as the safekeeper and primary trading intermediary for multiple rival XRP-based exchange-traded products. In this capacity, it plays a pivotal role in maintaining the US market for the XRP spot exchange-traded product system.
WisdomTree also relies on Coinbase for its WisdomTree Bitcoin Fund (BTCW), which began trading alongside nine other spot Bitcoin ETFs on Jan. 11.
Previous spot XRP ETF filings came from Bitwise, Canary Capital and 21Shares
By submitting an S-1 application for the XRP fund, WisdomTree is now joining forces with three other ETF creators: Bitwise (a crypto asset manager), Canary Capital, and 21Shares.
In October, Bitwise was one of the pioneering companies to apply for a spot-based XRP Exchange Traded Fund (ETF), filing Form S-1 for their Bitwise XRP ETF on the 2nd. Additionally, Bitwise was among the initial issuers of a spot Bitcoin ETF, launching its Bitwise Bitcoin ETF (BITB) in January.
Later on, just like Bitwise, Canary Capital submitted an S-1 form for their Canary XRP ETF to the Securities and Exchange Commission on October 9th.
21Shares, a partner of Cathie Wood’s ARK Invest in creating the ARK 21Shares Bitcoin ETF (ARKB), submitted a registration form for its Core XRP Trust on November 1st. This trust does not offer direct investment in XRP, but instead provides an indirect way to participate in the market.
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2024-12-02 16:31