As the cryptocurrency landscape evolves, asset managers are broadening their horizons beyond Bitcoin, turning their attention towards XRP as a promising candidate in the exchange-traded fund (ETF) market. This shift is underscored by the recent endeavors of Global ETF provider WisdomTree, which has initiated proceedings to introduce an XRP ETF in the United States. This marks the third attempt to establish a spot XRP ETF in the nation, signaling growing interest and confidence in XRP’s potential.
WisdomTree’s Strategic Move
WisdomTree’s filing is a significant early step in the ETF launch process, acting as a precursor to a formal application to the Securities and Exchange Commission (SEC). Fox journalist Eleanor Terrett has confirmed the legitimacy of this filing, highlighting WisdomTree’s robust position, with the firm managing assets worth over $100 billion. Recently, WisdomTree also expanded its offerings by launching a physical Ripple ETP in Europe. This move is indicative of the company’s increasing focus on Ripple’s native token, XRP.
Growing Interest in XRP ETFs
The interest in XRP ETFs is not limited to WisdomTree. In a similar vein, two other companies, Bitwise and Canary Capital, have submitted filings for spot XRP ETFs with the U.S. SEC this October. These actions reflect a burgeoning interest in diversifying crypto investments, with XRP emerging as a favorable option for asset managers and investors alike.
XRP Experiences a Significant Price Surge
The buzz surrounding these filings has had a tangible impact on XRP’s market performance, propelling its price upward by over 10% in intraday trading. Market analysts are closely monitoring developments, with some predicting that if XRP surpasses the $1.50 mark, it could rally to exceed $2 in the near term. This optimistic outlook is bolstered by respected analyst Armando Pantoja, who envisions the possibility of XRP reaching between $8 and $30.
Legal and Regulatory Landscape
The optimistic forecasts for XRP are further fueled by expectations of a favorable resolution to Ripple’s ongoing legal battle with the U.S. SEC, projected for early 2025. The potential changes in the regulatory environment, particularly with the anticipated resignation of SEC Chair Gary Gensler, could lead to more lenient regulations for XRP ETFs. This shift may ease the path for XRP ETFs, fostering a more supportive atmosphere for their approval and growth under new leadership. As the cryptocurrency market continues to evolve, XRP’s role in the ETF space is one to watch with keen interest.
