WisdomTree Inc. Withdraws XRP ETF Application Amid Strong Market Interest

WisdomTree Inc. (NYSE: WTRI), the New York‑listed asset‑management firm known for its diversified suite of sponsored exchange‑traded funds, has formally withdrawn its application for a spot XRP exchange‑traded fund (ETF). The filing was submitted to the U.S. Securities and Exchange Commission on January 6, 2026, and the decision was publicly disclosed at 19:45 UTC on January 7, 2026.

The move comes despite substantial inflows into U.S. spot‑XRP ETFs, which totaled more than $1.25 billion in 2026, and a surge of approximately $19 million in new assets on the day of the withdrawal. XRP’s spot price fell roughly 5 % immediately after the announcement, trading around $2.20‑$2.28, a level below the $2.30 support that had been observed earlier in the week.

Context and Rationale

WisdomTree’s decision was framed as a strategic pause rather than a permanent abandonment. Management cited regulatory uncertainty surrounding the treatment of tokenized assets and the need to align the product’s structure with evolving SEC guidance. While the firm’s digital‑asset initiatives—digital funds, tokenized securities, and blockchain‑native wallets—remain a core growth driver, the XRP ETF was deemed too premature given the current regulatory climate.

The company’s portfolio, which includes high‑quality, earnings‑weighted funds such as the U.S. Large‑Cap Fund (EPS) and diversified dividend strategies (DHS, DES, DTD), continues to generate steady performance. The EPS fund, for example, has outperformed the S&P 500 by 32 percentage points over the past decade, delivering a blend of growth and income that appeals to retirees seeking low‑drama exposure.

Market Reaction

The immediate market response was muted in terms of WisdomTree’s own equity. The stock closed at $13.66 on January 5, 2026, well within a range that has seen a 52‑week high of $14.96 (September 22, 2025) and a low of $7.47 (April 6, 2025). The relative‑strength rating for the firm jumped to an 83, signalling a technical improvement that may support a rally in the near term.

XRP’s price slide was offset by continued inflows to the broader spot‑XRP ETF universe. Analysts note that the demand for exposure to the cryptocurrency remains robust, suggesting that other issuers may still capture market share as WisdomTree’s product is shelved.

Forward‑Looking Perspective

WisdomTree’s market cap of approximately $1.88 billion and a price‑earnings ratio of 19.33 place the firm in a competitive position within the capital‑markets sector. The decision to halt the XRP ETF reflects a cautious, risk‑averse approach that aligns with the company’s broader digital‑asset strategy.

Investors should watch for:

  1. Regulatory developments – Any clarification from the SEC on tokenized asset ETFs could reinvigorate demand for a WisdomTree‑backed product.
  2. Product pipeline – The firm’s commitment to digital funds and blockchain infrastructure may yield new revenue streams once market conditions stabilize.
  3. Fund performance – The continued success of EPS, DHS, and other smart‑beta offerings may sustain investor confidence even in the absence of a high‑profile XRP product.
  4. Market dynamics – If XRP’s price rebounds, secondary issuance of ETFs by competitors could intensify, potentially eroding WisdomTree’s share of the digital‑asset ETF market.

In sum, WisdomTree’s withdrawal underscores the firm’s disciplined approach to navigating the intersection of traditional asset management and emerging blockchain technology. While the immediate effect on the stock was modest, the company’s strategic positioning and robust product lineup suggest resilience and an ability to adapt as regulatory and market conditions evolve.