WisdomTree Files an S-1 Form in the US to Spot XRP ETF

WisdomTree, one of the most well-known spot Bitcoin ETF providers, has officially submitted an S-1 form with the SEC in the US for a spot XRP ETF. The company is now the fourth firm in America to do so and this step follows the company’s XRP entity registration in Delaware on November 25.

The Main Goal is To Gain Exposure

The official registration statement by WisdomTree says that the main goal behind the filing is to gain exposure for the XRP price. That’s followed by fewer expenses and liabilities of the operations by the Trust.

WisdomTree aims to achieve these goals by issuing shares on the Cboe BZX Exchange. The new fund will create and redeem shares via cash-create or cash exchange. The in-kind model may be implemented at some point in the future.

The filling also states that the custodian and execution agent of XRP are affiliated with Coinbase Global, a US crypto exchange. According to the documentation, WisdomTree considers Coinbase a vital player in the game as it “plays a critical role in supporting the US spot XRP” ecosystem.

Apart from WisdomTree, three other companies filed XRP ETF fillings. These are 21Shares, Bitwise and Canary Capital. Bitwise was among the first ones to do so. Its filing was sent on October 2.

The SEC and Ripple Have a Rough History

So far, the SEC hasn’t approved a spot XRP ETF. The entity has had a major legal battle with Ripple, dating back to2020. Back then, the SEC accused Ripple of raising over $1.3 billion by selling XRP. The SEC considered this move unregistered security.

Even though Judge Analisa Torres from the Southern District of New York ruled that some of Ripple’s programmatic sales didn’t violate security laws, she still ordered Ripple to pay a total of $125 million in fines. Ripple appealed the decision.

That’s why WisdomTree issued a warning to its investors that XRP may be considered a security. The warning states that the mathematics behind determining whether a certain digital asset qualifies as a security is both “complex and unpredictable.” The warning went on to say that the SEC stated that the status of the asset may change, depending on the circumstances.