WisdomTree, the New York-based asset manager handling over $113 billion in assets, has filed an application to establish an XRP exchange-traded fund (ETF) in Delaware, United States.
The proposed fund, named the WisdomTree XRP Fund, claims to give investors regulated exposure to XRP, the sixth-largest crypto by market capitalization. This step puts WisdomTree in direct competition with firms like Bitwise and Canary Capital, both of which have also pursued XRP ETFs in recent months.
By setting up the fund in Delaware, WisdomTree said it seeks to benefit from the state’s business-friendly legal framework, which has historically attracted financial institutions and investment vehicles.
This comes at a time when Ripple, the company associated with XRP, is still locked in a legal battle with the U.S. Securities and Exchange Commission (SEC) even as chairman Gary Gensler announced his resignation.
The SEC claims that XRP is a security, something Ripple fiercely disputes. While Ripple scored a partial victory in 2023 when a federal court ruled that retail sales of XRP did not violate securities laws, the SEC has an ongoing appeal.
Meanwhile, the news of Gensler’s resignation sparked a long-awaited bull run. The token briefly surged to test the $1.60 to $1.70 resistance zone yesterday, a key level identified after XRP broke above the $1.30 Fibonacci retracement line earlier this year.
However, it faced rejection at this resistance point and is now trading near $1.40, holding firm at a crucial support level.
This price action shows the heightened speculation surrounding XRP as institutional interest grows. If XRP manages to break through the $1.70 level and establish it as support, analysts suggest it could target $2.00 as the next significant resistance zone.
On the flip side, a dip below $1.30 could signal further declines, with $1.00 seen as the next major support level.
The wider market has remained volatile. Bitcoin has dropped below $98,000, and most of the top ten cryptocurrencies are in the red.
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