WisdomTree Withdraws XRP ETF Filing Just as Institutional Interest Peaks

In early January 2026, XRP captured significant attention, emerging as one of the most discussed assets in the cryptocurrency market. Analysts have dubbed it the “hottest trade” of the year due to substantial ETF inflows and its position as a less crowded alternative to Bitcoin. However, just as the excitement reached its high point, a surprising regulatory shift reminded investors that institutional adoption can be unpredictable.

Key Takeaways

XRP has gained significant attention and strong ETF inflows at the start of 2026.
WisdomTree has withdrawn its XRP ETF registration with the U.S. SEC, highlighting regulatory uncertainties.
This decision comes amid a record-breaking performance of XRP ETFs in the market.
While some institutions are cautious, others remain optimistic about XRP's future, with predictions of significant price increases.

WisdomTree withdraws its XRP ETF filing

WisdomTree's XRP ETF Withdrawal

WisdomTree has officially withdrawn its registration statement for the WisdomTree XRP Fund (Form S-1), according to a recent filing with the U.S. Securities and Exchange Commission (SEC). Although the term “withdrawal” may seem straightforward, invoking Rule 477 is a strategic legal move. This rule, part of the Securities Act of 1933, allows an issuer to pull back a registration statement before it becomes active and before any securities are sold.

The original Form S-1 was filed on December 2, 2024. By requesting the withdrawal of “all exhibits and amendments,” WisdomTree effectively resets its regulatory timeline. This action also prevents the SEC from issuing a formal “order of stop” or a public rejection, which could potentially harm the firm's future ventures in the crypto space. WisdomTree stated, “The Trust is requesting withdrawal of the Registration Statement because it has determined not to proceed at this time with the offering covered by the Registration Statement.”

Is WisdomTree Mirroring BlackRock's Approach?

Interestingly, WisdomTree’s decision reflects a trend similar to that established by BlackRock, yet there is no definitive proof of a direct correlation. Despite the excitement surrounding the 2026 altcoin ETF surge, BlackRock has stayed away from the XRP and Solana (SOL) markets, focusing instead on maintaining its lead in Bitcoin (BTC) and Ethereum (ETH). This aligns with the current record-breaking trends in XRP ETFs.

XRP ETF and Market Performance Analysis

On January 6, 2026, XRP ETFs saw impressive net inflows totaling $19.12 million, with Franklin Templeton’s XRPZ attracting $7.35 million, followed by Canary’s XRPC with $6.49 million, and Bitwise with $3.54 million. Despite a staggering cumulative total net inflow of $1.25 billion, XRP’s price action tells a different story. As of now, XRP has dropped to $2.25, representing a 4.9% decline in just 24 hours.

Nevertheless, while some institutions are becoming more cautious, others maintain a bullish outlook on XRP. Notably, Standard Chartered has made bold predictions regarding the altcoin, projecting a price target of $8 by the end of 2026. Geoff Kendrick, the bank's Head of Digital Assets Research, emphasized that “Improving U.S. regulatory clarity has made it easier for institutions to take exposure and allowed Ripple and the XRP ecosystem to progress without constant litigation concerns.” With an $8 target suggesting approximately a 300% upside from current levels, the stakes are high for 2026.

Final Thoughts

As the cryptocurrency market evolves, the recent developments surrounding WisdomTree and XRP highlight the challenges of navigating regulatory landscapes. While institutional interest remains strong, the path forward can be unpredictable, making it essential for investors to stay informed and cautious.