XRP ETF Filing Marks a Critical Turning Point

The XRP ETF file has stirred optimism in the crypto sector, with analysts tying the move to the potential policy shifts expected under President-elect Donald Trump's administration.

The XRP ETF application has sparked optimism in the cryptocurrency industry, with analysts linking the move to anticipated policy changes under President-elect Donald Trump's administration.

On November 25, New York-based asset manager WisdomTree Funds filed with the Delaware Secretary of State to establish an XRP (XRP) exchange-traded fund (ETF), as reported by Cointelegraph.

In the United States, the firm is among the first three applicants for an XRP ETF, along with Bitwise, Canary Capital, and 21Shares. At the time of writing, no such petitions have been approved by the SEC.

The filing by WisdomTree comes at a potentially critical juncture for XRP. The San Francisco-based firm Ripple had a partial win in July 2023 when a judge ruled that XRP was not a security in a case brought by the SEC.

On October 2, 2024, the SEC filed a formal notice of appeal, one day before the court-imposed deadline. A subsequent motion to extend the time to file the opening brief was granted, pushing the deadline to January 15, 2025.

Following his victory in the 2024 US presidential election in early November, President-elect Donald Trump's transition team has been actively engaged in shaping the incoming administration.

While the Ripple lawsuit has not been specifically addressed, and Trump has not announced whether his administration will continue the outstanding cryptocurrency lawsuits filed by the SEC, experts anticipate a significant shift in the federal government's approach to cryptocurrency regulation and oversight.

Trump, a Republican, campaigned on a platform of making the United States the world leader in Bitcoin, crypto, and blockchain technology. He has also expressed dissatisfaction with the handling of cryptocurrency by President Joseph Biden and current SEC Chair Gary Gensler.

But with Trump's presidency, the country will operate under an entirely new regime of financial watchdogs, with conservative appointees set to lead the Treasury departments (pending approval) and Gensler expected to be out of the SEC role.

Ultimately, Trump's administration may establish a regulatory landscape that favors the dismissal of the protracted lawsuits against firms like Ripple, potentially paving the way for an XRP ETF sooner than anticipated by analysts.