WisdomTree pulled its XRP ETF S‑1, asking the SEC to withdraw all related exhibits after deciding not to proceed now. In an RW notice dated 6 January, the trust wrote that, “pursuant to Rule 477 of Regulation C under the Securities Act of 1933, as amended (the ‘Securities Act’), WisdomTree XRP Fund hereby requests that the Securities and Exchange Commission consent to the withdrawal of the Trust’s Registration Statement on Form S‑1.” No shares were sold under the registration, meaning the product never reached the market despite months of engagement with regulators and exchange partners. The abandoned product was designed to give investors regulated exposure to Ripple’s native token via shares listed on Cboe BZX, mirroring the structure used by WisdomTree’s earlier Bitcoin ETF.
Instead, the issuer now exits a field where Grayscale, Canary, Franklin Templeton and Bitwise are already fighting for flows and liquidity in a narrow but aggressively contested niche. In recent months, the SEC repeatedly pushed back decisions on XRP (XRP) filings, forcing would-be sponsors to navigate shifting timelines and rising legal and operational costs. That differentiation comes with risk; issuers must invest heavily in distribution and spreads to stand out in a sector that, while growing, still sits far behind the liquidity profile of BTC and ETH vehicles.
WisdomTree’s withdrawal contrasts sharply with the cash torrent hitting live XRP products. Spot XRP ETFs in the US have amassed more than $1.25 billion in cumulative net inflows within weeks of launch, pushing total net assets to roughly $1.62 billion, according to SoSoValue data cited by multiple venues. On 6 January alone, XRP spot ETFs recorded $19.12 million in net inflows, extending a streak with no material outflow days.
Franklin’s XRPZ led that latest session with $7.35 million of fresh capital, followed by $6.49 million into Canary’s XRPC and $3.54 million into Bitwise’s XRP fund. That tension—booming ETF demand versus cautious price action—frames WisdomTree’s decision in a harsher light. In a market where capital is clearly flowing but market share is concentrating around a handful of first movers, walking away for now may be less about XRP’s prospects and more about an issuer deciding it is late to a game that has already found its leaders.
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