WisdomTree Funds filed registration paperwork in Delaware on November 25, taking a step toward launching an XRP exchange-traded fund (ETF).

The development was first reported by Fox Business journalist Eleanor Terrett, who shared confirmation from the asset management firm about the legitimacy of the filing through a social media post.

WisdomTree’s Filing

This filing marks the initial phase of securing regulatory approval for the XRP ETF. To move forward, WisdomTree must submit a formal S-1 registration with the Securities and Exchange Commission (SEC), which will initiate the official review process.

The company joins other industry players such as Bitwise, Canary Capital, and 21Shares in the race to introduce an XRP ETF in the United States. WisdomTree is not new to crypto-based ETFs, having received approval from the commission for a spot Bitcoin ETF and currently managing an Ethereum ETF that trades in European markets.

The potential for a spot XRP ETF has been a topic of interest in the crypto industry. Ripple’s CEO, Brad Garlinghouse, has been a vocal advocate for such a product, recently emphasizing his belief in the inevitability of altcoin ETFs, including one for XRP.

Last week, Nate Geraci predicted a surge in spot crypto ETF filings, citing pro-crypto regulatory momentum following Donald Trump’s return to the White House. Geraci called the current climate an optimal moment for providers to act. The WisdomTree filing appears to align with this forecast.

Regulatory Challenges and Timeline Delays

However, the road ahead is far from clear. Bloomberg analyst James Seyffart cautioned in an interview that regulatory hurdles for altcoin ETFs, including XRP, remain significant. Unlike Bitcoin and Ethereum, which benefited from connections to CME-regulated futures markets, altcoins don’t have an established framework.

“Without a regulated market of significant size, the SEC has historically denied altcoin ETF applications,” Seyffart explained. He added that issues such as market manipulation, custody, and compliance must be addressed before these products can advance.

He also highlighted the difference between filing processes for ETFs. While the 19b-4 rule filings initiate a formal review period with fixed deadlines, S-1 filings like WisdomTree’s XRP ETF application lack strict timelines. This difference means that altcoin ETF applications could face extended delays, with decisions potentially stretching into late 2025.

However, the analyst also mentioned that changes in SEC leadership could impact how quickly approvals happen. He explained that with current chair Gary Gensler confirming he will step down in January, a new agency head could speed up the process, but it’s unclear how much this will affect the dates.

Seyffart also noted that multi-asset index ETFs, like Grayscale’s GDLC and Bitwise’s Crypto 10 Index, might face fewer problems due to their heavy focus on Bitcoin and Ethereum. However, SEC approval will depend on whether the smaller altcoin allocations meet compliance standards.