Why Did WisdomTree Hit the Brakes on Its XRP ETF? The Plot Thickens!

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Ah, the first week of 2026, and what do we have here? XRP, the darling of the digital realm, has waltzed its way into the limelight, becoming the talk of the town! ��

Analysts are buzzing, dubbing it the “hottest trade” of the year! Who knew this digital currency could make Bitcoin look like yesterday’s news? 🚀 Thanks to a flood of ETF inflows and its charm as a less congested option, XRP is stealing the show!

But just when the excitement reached a boiling point, look out! A sudden regulatory pirouette has reminded us all that institutional adoption is about as straight as a crooked line. 🤷‍♂️

WisdomTree Pulls the Plug on Its XRP ETF Filing

In a move that’s as shocking as finding a vegan at a barbecue, WisdomTree has officially retracted its registration statement for the WisdomTree XRP Fund (Form S-1) with the U.S. SEC. 🥩✋

Now, before you think “withdrawal” is just a fancy way of saying “oops,” invoking Rule 477 is more like a legal safety net, folks.

This nifty little rule from the Securities Act of 1933 allows an issuer to retract a registration statement before it takes flight and before any securities start dancing off the shelves. 🎭

So, WisdomTree said “not today” to the Form S-1 they filed back on December 2, 2024. By asking the Commission to withdraw “all exhibits and amendments,” they’ve hit the reset button on their regulatory clock. ⏰

This clever maneuver also blocks the SEC from throwing them a formal “order of stop” or a public rejection, which could have left a nasty stain on the firm’s crypto future. Yikes!

They stated,

“The Trust is requesting withdrawal of the Registration Statement because it has determined not to proceed at this time with the offering covered by the Registration Statement.”

Is WisdomTree Playing Follow the Leader with BlackRock?

Meanwhile, one can’t help but wonder if WisdomTree’s retreat is a mirror image of BlackRock’s playbook. Yet, where’s the proof? 🧐

Despite the frenzy surrounding the 2026 altcoin ETF boom, BlackRock has been MIA in the XRP and Solana [SOL] race, seemingly content to reign supreme in the realms of Bitcoin [BTC] and Ethereum [ETH].

And all of this unfolds while XRP ETFs are smashing records left and right! 📈

XRP ETF and Price Analysis

On January 6 alone, XRP ETFs snagged a whopping $19.12 million in net inflows! Franklin Templeton’s XRPZ bagged $7.35 million, followed closely by Canary’s XRPC and Bitwise, with $6.49 million and $3.54 million, respectively. Cha-ching! 💰💰

Yet, despite a staggering Cumulative Total Net Inflow of $1.25 billion, the price action tells a different tale. At press time, XRP slipped down to $2.25, reflecting a 4.9% drop in just 24 hours. Talk about a rollercoaster ride! 🎢

While some institutions are hitting the brakes, others are staying bullish. In a noteworthy note to clients last year, Standard Chartered made a bold call for the altcoin – predicting a price target of $8 by the end of 2026! 💸

Geoff Kendrick, the bank’s Head of Digital Assets Research, summed it up perfectly:

“Improving U.S. regulatory clarity has made it easier for institutions to take exposure and has given Ripple and the XRP ecosystem room to build without constant litigation risk.”

With an $8 target implying a dazzling 300% upside from current support levels, the stakes for 2026 are higher than a cat on a hot tin roof! 🐱🔥

Final Thoughts

  • WisdomTree’s retreat serves as a reminder that not every institution shares the same rosy vision of XRP’s breakout… at least not yet.
  • The tug-of-war between soaring ETF inflows and drooping spot prices paints a picture of a market still seeking its balance.

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2026-01-08 05:18