The New York-based financial firm with over $113 billion under management has officially withdrawn its registration for a proposed spot XRP ETF. The announcement may have caused or added to Ripple’s 24-hour token price slump of about 3%.
WisdomTree filed its S-1 registration with the US Securities and Exchange Commission (SEC) in December 2024, seeking to launch a fund that would directly track the price of XRP.
In its filing submitted on Tuesday, the firm said it has “determined not to proceed at this time” with the offering and requested the SEC to withdraw the registration statement and all accompanying exhibits and amendments.
“Pursuant to Rule 477 of Regulation C under the Securities Act of 1933, WisdomTree XRP Fund hereby requests that the SEC consent to the withdrawal of the Trust’s Registration Statement on Form S-1, together with all exhibits and amendments thereto, initially filed with the Commission on December 2, 2024. No shares were sold pursuant to the above-mentioned Registration Statement,” the ETF issuer’s filing with the SEC read.
WisdomTree withdrawal sparks confusion as XRP ETF products rake over $1 billion
According to data compiled by SoSoValue, US-based spot XRP (exchange-traded fund) ETFs have collectively recorded over $1.25 billion in total inflows since their launch. On Tuesday alone, net inflows totaled $19.12 million, with Franklin Templeton’s XRPZ collecting $7.35 million in new capital. Canary’s XRPC and Bitwise’s XRP ETFs followed with over $10 million combined.
With all signs showing a market of sustained investor demand, WisdomTree has surprisingly decided to pull its application from the race. The SEC’s standard review period for such filings is up to 240 days, meaning a decision on the proposal was anticipated in October 2025. However, the SEC pushed back the decision deadline for WisdomTree’s application, which has now been officially rescinded for reasons only known to the asset manager.
Some netizens have suggested that WisdomTree’s decision is in tandem with the anticipation of asset managers like BlackRock potentially filing their own spot XRP ETF applications.
“In the industry, this is known as “Clearing the Deck.” It’s a strategic retreat that smaller issuers make when they get intel that a giant (BlackRock or Vanguard) is about to drop a nuclear bomb on the market,” suggested one crypto ETF market observer. “They don’t withdraw a major product just because they changed their mind. You only withdraw an application like this for one reason if you know you can’t compete with the giant that is about to enter.”
XRP price pulls back to $2.28 after heated 2026 start
WisdomTree’s spot XRP ETF application withdrawal may have widened the wound of the token’s bloodbath in the last 24 hours, taking its price below $2.3 after peaking at $2.4. XRP had formed a defined trading base in the $1.77 to $1.95 range before New Year’s Eve, but a charge from bulls helped the coin regain its spot as the fourth largest crypto by market cap.
According to several market watchers, XRP’s short-term technical indicators spell an uptick in price momentum, but support levels near $2.05 to $2.10 must hold to sustain a rebound. If that support fails, prices could retest lower levels and lead to a drop to $1.9, a level the market last witnessed on January 2.
XRP price resistance clusters have been formed around the $2.33 to $2.35 range, where the 200-day exponential moving average sits. A breakout above this zone could clear the path for $2.64 and potentially $3.
Commentator ‘Steph is Crypto’ drew a comparison between the current price patterns and the 2017 XRP market cycle on X, noting that in both instances, periods of consolidation were followed by corrective movements forming a falling wedge structure.
The resolution of that pattern in 2017 started with a reset, which preceded a breakout phase that took XRP from $0.23 to a then all-time-high price level of $2.28.
“That same setup is visible today. The corrective structure looks complete, downside momentum has faded, and XRP is now breaking out of the same type of compression zone that preceded the 2017 rally,” the trader explained.
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