WisdomTree Withdraws XRP ETF Amid Institutional Demand Surge

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What to Know:
  • WisdomTree withdraws XRP ETF filing citing competitive landscape.
  • XRP experiences ~6% price drop post-announcement.
  • Institutional demand reached high levels prior to withdrawal.

WisdomTree withdrew its proposal for an XRP ETF with a formal SEC filing on January 6, 2026, citing a decision not to proceed without detailed public rationale.

The withdrawal coincided with heightened institutional demand and a competitive market, resulting in a 6% drop in XRP’s price due to perceived lost U.S. ETF opportunities.

WisdomTree Digital Commodity Services has withdrawn its XRP ETF proposal from the SEC, citing competitive market conditions in a recent filing.

The withdrawal underscores competitive pressures within the rapidly evolving crypto ETF market, impacting XRP pricing and institutional investor strategies.

WisdomTree Halts XRP ETF Citing Market Competition

WisdomTree Digital Commodity Services filed an S-1 for an XRP ETF with the SEC, but has now withdrawn it, citing it will not proceed under current conditions. The company submitted the withdrawal under SEC Rule 477, a common choice when deciding not to launch a product ahead of strategic shifts. No shares had been sold.

WisdomTree Digital Commodity Services, LLC, Sponsor of the proposed WisdomTree XRP Fund, “has determined not to proceed at this time”.

XRP Price Drops 6% After ETF Withdrawal News

XRP suffered a 6% price drop alongside substantial liquidations on major exchanges following the withdrawal announcement, reflecting market sensitivity. The competitive niche was already crowded with Grayscale, Franklin Templeton, and others, making it challenging for late entrants like WisdomTree.

ETF Withdrawals Not Unusual in Volatile Markets

Crypto ETF withdrawals like this are not unusual. Volatility and market dynamics have led numerous issuers to revise their strategies before product launches. Given previous Rule 477 filings, late entrants often face difficulties capturing substantial flows in crowded landscapes, prompting strategic reassessments.

SEC Rule 477

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.
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Thane Morrison is a diligent crypto news author and keen blockchain and digital finance enthusiast. He writes insightfully correct engaging content on Bitcoin, altcoins, DeFi, and NFTs to help readers understand how this relentless, changing world works. Simplification and empowerment are what he really stands for and enables readers to keep their heads in the game when making vital decisions in such a demanding space.

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