WisdomTree has withdrawn its proposed XRP ETF registration as money continues to pour into live U.S. spot XRP funds. In an RW notice dated January 6, WisdomTree Digital Commodity Services asked the U.S. Securities and Exchange Commission to consent to the withdrawal of the WisdomTree XRP Fund’s Form S-1 registration statement, along with all related exhibits and amendments.
The filing said the trust was acting under Rule 477 of Regulation C under the Securities Act of 1933 and had decided “not to proceed at this time.” No shares were ever sold under the registration, so the fund never came to market, even though the original filing dated back to December 2024.
Early issuers have taken the core XRP ETF liquidity
WisdomTree’s planned product was meant to give investors regulated exposure to XRP through shares listed on Cboe BZX, using a structure similar to its earlier Bitcoin ETF. It is leaving a segment where Grayscale, Franklin, Canary, and Bitwise are already competing for flows and market depth. The report notes that the SEC has repeatedly delayed decisions on XRP ETF filings in recent months, raising legal and operational costs for issuers trying to stay in the race.
Analysts described XRP ETFs as a “third path” after Bitcoin and Ethereum, one that lets asset managers broaden their crypto lineup without moving into thinly traded long-tail tokens. Still, standing out is expensive. Issuers need to spend heavily on distribution and on keeping trading spreads competitive in a category that remains much smaller than BTC and ETH fund markets.
Withdrawal comes while inflows keep building
The retreat stands in sharp contrast to the pace of cash entering live products. According to SoSoValue data cited in the report, U.S. spot XRP ETFs gathered more than $1.25 billion in cumulative net inflows within weeks of launch, bringing total net assets to about $1.62 billion. On January 6 alone, spot XRP ETFs recorded $19.12 million in net inflows, extending a stretch without any material outflow day.
By issuer, Franklin’s XRPZ led that session with $7.35 million in fresh inflows. Canary’s XRPC drew $6.49 million, while Bitwise’s XRP fund added $3.54 million. Earlier figures also showed weekly inflows above $40 million, even as XRP’s short-term price action remained uneven.
XRP remains below its 2025 high
Despite solid ETF demand, XRP is still trading well below its 2025 peak, a pattern the article compares with the early post-launch periods for spot Bitcoin and Ethereum ETFs. Some quantitative traders expect XRP to follow a similar sequence: strong inflows first, then a consolidation phase after speculative excess cools.
That leaves WisdomTree’s decision looking more like a response to market structure than a judgment on XRP itself. Capital is entering the category, but market share is clustering around a small group of aggressive early entrants, making the path harder for firms arriving later.