WisdomTree Withdraws XRP ETF Application

TLDR

• WisdomTree filed to withdraw its XRP ETF application on January 6, 2026.
• Total net assets of existing XRP funds remain unaffected at $1.62 billion.
• Competition includes issuers like Bitwise and Grayscale in the ETF market.

WisdomTree has decided to withdraw its application for an XRP Exchange-Traded Fund (ETF). The decision was made official with a filing to the U.S. Securities and Exchange Commission (SEC) on January 6, 2026. The company cited its choice "not to proceed at this time" in its filing, as per the official document. No shares were sold under this intended registration.

The initial filing on December 2, 2024, intended to track the price of XRP. The fund planned to use cash-only creations and redemptions initially due to pending "In-Kind Regulatory Approval." Bank of New York Mellon was proposed to administer the project. This move came at a time when the crypto ETF market was becoming increasingly competitive.

WisdomTree’s Strategic Decision

The decision to withdraw from the ETF race affects primarily XRP, Ripple's native token. However, it does not impact the total net assets of existing XRP funds from other issuers. Currently, these funds reported $1.25 billion total inflows and $19.12 million net inflows on the withdrawal date, making the total net assets $1.62 billion. WisdomTree’s withdrawal does not affect these figures.

WisdomTree, a global asset manager, made this strategic call as part of its broader tactical alignment. The firm manages over $113 billion in assets and has been exploring the crypto ETF space as part of its expanding portfolio.

Previous and Competing Registrations

The competition in the altcoin ETF market includes issuers such as Bitwise, 21Shares, Canary Capital, Franklin Templeton, and Grayscale. For WisdomTree, its involvement in crypto ETFs isn't new. It has been part of its strategy through WisdomTree Issuer X Limited.

The company’s previous registration statement regarding another ETF can be accessed through the SEC Filing: WisdomTree's Registration Statement. This document provides more context on the company's engagements and financial instrument offerings under regulatory filings.

Regulatory and Market Context

WisdomTree’s withdrawal comes at a time when the regulatory landscape for crypto-focused financial products is still facing uncertainty. The U.S. SEC has not yet issued any new regulatory frameworks, nor has there been any recent update from other financial regulatory bodies like the CFTC or ESMA.

Moreover, the Cboe BZX Exchange had a prior notice for listing WisdomTree XRP Fund shares under a specific rule, which remains part of the official CBOE BZX Exchange Regulatory Rule Change Notice. This would have placed the fund in a unique position amid evolving regulations surrounding commodity-based trust shares.