WisdomTree Withdraws US XRP ETF Filing as ETF Market Consolidates

Published: 2026-01-10 06:27:34 |

WisdomTree has formally withdrawn its registration for a US-listed WisdomTree XRP Fund, asking the SEC to cancel the application. The New York asset manager had entered the U.S. XRP ETF race in late 2024 but already offers a physically backed XRP product in Europe (WisdomTree Physical XRP, ticker XRPW). The withdrawal follows similar moves by CoinShares, which pulled several US ETF proposals (including XRP, SOL and LTC). U.S.-listed XRP ETFs have attracted roughly $1.2 billion of net inflows and hold about $1.5 billion in assets under management, with early entrants such as Canary Capital, Bitwise, Franklin Templeton and Grayscale leading flows. WisdomTree cited a crowded, competitive market and subdued risk appetite as reasons for exiting the US XRP ETF effort. The filing cancellation coincided with short-term outflows from some XRP ETF products and a drop in XRP price, highlighting potential volatility and liquidity shifts across ETF wrappers. For traders: expect increased short-term volatility in XRP (XRP), possible rotation of ETF flows among incumbents, and a higher bar for new entrants — while large managers continue to pursue other crypto ETFs, the XRP ETF category is consolidating around established sponsors.

Bearish

The withdrawal is bearish for XRP price in the near term. WisdomTree’s exit signals reduced competition for market share among ETF sponsors but also indicates weaker incremental institutional demand for a new US XRP ETF. The move coincided with net outflows from several XRP ETF products and a price drop, showing that investors may reallocate or reduce exposure when sponsor options shrink. Short-term impacts: increased volatility, liquidity shifts between ETF wrappers, and possible selling pressure as market makers and allocators rebalance. Medium-to-long-term impacts: neutral-to-slightly negative — consolidation around established sponsors could stabilize flows for surviving ETFs, but the higher barrier for new entrants may slow incremental institutional adoption of XRP in the US. Overall, expect short-term downside pressure and choppy trading; a sustained recovery would require renewed inflows or positive fundamental/ regulatory developments.