XRP Spot ETFs Attract $1.25B in Weeks While WisdomTree Abandons Its Fund

The XRP spot ETF market is experiencing explosive growth, yet not all players are staying in the game. WisdomTree Digital Commodity Services has formally requested the SEC to withdraw its XRP ETF registration statement just as competing products are capturing billions in investor capital.

A Market Taking Off Without WisdomTree

On January 6, WisdomTree filed an RW notice with the Securities and Exchange Commission, requesting withdrawal of its Form S‑1 registration for the proposed WisdomTree XRP Fund. The firm determined “not to proceed at this time,” citing Rule 477 of Regulation C. No shares ever traded under the registration, meaning the product was shelved before launch despite months of regulatory engagement.

The timing is striking. The XRP spot ETF market is booming—rival products from Grayscale, Franklin Templeton, Canary, and Bitwise have already pulled in over $1.25 billion in cumulative net inflows since their debuts. On January 6 alone, these ETFs recorded $19.12 million in fresh capital, with Franklin’s XRPZ leading at $7.35 million, followed by Canary’s XRPC at $6.49 million and Bitwise’s offering at $3.54 million. Weekly inflows have exceeded $40 million in recent stretches.

Why XRP ETFs Matter for Asset Managers

The XRP product was intended to provide regulated, listed exposure to Ripple’s native token through Cboe BZX—the same distribution channel WisdomTree uses for its Bitcoin offerings. Analysts view XRP ETFs as a “third path” for asset managers seeking to diversify beyond Bitcoin and Ethereum without venturing into illiquid altcoins. That strategy appeals to institutions wanting exposure that isn’t purely BTC‑ or ETH‑dominant.

But success in this niche demands more than good timing. Issuers must build competitive liquidity and invest heavily in distribution. The barrier to entry has risen as first movers—Grayscale, Canary, Franklin, and Bitwise—have already established market share and consolidated investor flows. In a crowded field, late entrants face a steeper climb.

XRP’s Trajectory: Mirroring Bitcoin and Ethereum Cycles

XRP currently trades at $2.06 with a flow circulation market cap of $125.16 billion, well below its 2025 peak. That price trajectory mirrors patterns observed after Bitcoin and Ethereum spot ETF launches—phases of strong institutional demand followed by consolidation as speculative excess corrects.

The gap between surging ETF inflows and cautious price action reveals the dynamics WisdomTree faced. Institutional capital is clearly flowing into XRP products, but market share is concentrating around the handful of early movers who captured liquidity first. For WisdomTree, entering late into a game already won by others may have looked like a risky proposition.

The SEC’s Shifting Timeline

WisdomTree’s withdrawal also reflects the SEC’s repeated delays on XRP filings throughout 2024. These postponements forced sponsors to navigate uncertain timelines, mounting legal costs, and operational strain. Some issuers may have calculated that the regulatory friction and concentrated competition no longer justified the capital outlay.

XRP’s appeal as a payments and treasury asset continues to attract institutional interest, particularly from portfolios seeking diversification. Yet WisdomTree’s decision to step back “for now” signals that even in a market flush with capital, timing and market share matter more than the underlying asset’s fundamentals.