XRP ETF Track Suddenly Changes: Amidst a Surge of Capital, WisdomTree Suddenly Withdraws Application

GateNews
XRP2,14%

Despite the strong capital inflows into XRP spot ETFs, the cryptocurrency market has received an unexpected piece of news. Asset management firm WisdomTree has officially filed to withdraw its XRP ETF registration with the U.S. Securities and Exchange Commission (SEC), choosing to temporarily step back in the increasingly competitive crypto ETF space.

According to the RW filing submitted to the SEC on January 6, WisdomTree Digital Commodity Services, the sponsor of the WisdomTree XRP Fund Trust, has voluntarily requested to withdraw its previously submitted S-1 registration statement under relevant provisions of the Securities Act of 1933. The document clearly states that WisdomTree has now decided not to proceed with the XRP ETF project and is also withdrawing all attachments and amendments since its initial filing on December 2, 2024. The ETF was originally intended to provide investors with a compliant channel to directly participate in the price performance of Ripple’s native token XRP, but it ultimately did not enter the share issuance phase.

This decision is particularly noteworthy given the ongoing surge in the XRP ETF market. At the beginning of 2026, spot XRP ETFs in the U.S. market attracted substantial institutional and retail capital. Data shows that within just a few weeks, the total capital inflow into XRP ETFs exceeded $1.25 billion, making it one of the most outstanding altcoin ETFs currently.

Just on Tuesday, the single-day net inflow of the U.S. spot XRP ETF reached $19.12 million, indicating that investor interest remains strong. Specifically, Franklin Securities’ XRPZ led with $7.35 million, followed by Canary Securities’ XRPC ($6.49 million) and Bitwise’s XRP ETF ($3.54 million). Driven by continuous capital inflows, the total net assets of XRP ETFs have approached $1.62 billion.

In the context of accelerated expansion of cryptocurrency ETF products and issuers diversifying into multiple digital assets, WisdomTree’s withdrawal does not imply a cooling market demand. Instead, it highlights the complexity of competition in the XRP ETF track. Market consensus suggests that regulatory strategies, product positioning, and internal risk assessments may be key factors prompting WisdomTree to temporarily halt progress.

Overall, the capital performance of XRP ETFs remains robust, with ongoing institutional demand. WisdomTree’s withdrawal appears more like a strategic adjustment rather than a negative outlook on XRP or the prospects of crypto ETFs. The future landscape of the XRP ETF market remains worth close attention.

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