Strategic Retreat Amidst a Flood of Capital: Why WisdomTree is Abandoning the XRP ETF Race

On one side is the booming XRP ETF track, and on the other side is the sudden withdrawal by a leading asset management company. Behind this seemingly contradictory phenomenon reflects the true complexity of competition in the crypto ETF market.

Event Overview: From Filing to Withdrawal

According to the latest news, WisdomTree officially submitted a withdrawal application to the U.S. Securities and Exchange Commission (SEC) on January 6, 2026, abandoning its XRP spot ETF project. The RW document filed with the SEC shows that WisdomTree Digital Commodity Services, pursuant to relevant provisions of the Securities Act of 1933, proactively requested to withdraw its previously submitted S-1 registration statement.

It is noteworthy that this project took just over a month from filing to withdrawal. WisdomTree initially submitted the XRP ETF registration documents on December 2, 2024, but ultimately chose to abandon it, and the ETF did not enter the share issuance stage.

Capital Hotspot and Market Status

WisdomTree’s withdrawal occurs at a rather contradictory moment. According to related information, the XRP spot ETF market has performed strongly, with continuous capital inflows:

Specifically, the leading XRP ETFs performed as follows:

• XRPZ (Franklin Securities): $7.35 million
• XRPC (Canary Securities): $6.49 million
• Bitwise XRP ETF: $3.54 million

Looking at XRP’s own performance, the market enthusiasm is evident. According to related information, XRP’s current price is $2.26, ranking 4th by market cap, with a 24-hour trading volume of $653 million, and a 7-day increase of 20.75%.

The True Reasons Behind the Withdrawal

Intensified Competition Landscape

WisdomTree’s withdrawal does not mean a cooling market demand but highlights the complexity of competition in the XRP ETF track. Several institutions have already successfully launched XRP spot ETFs, including Franklin Securities, Canary Securities, Bitwise, etc. In such a competitive environment, late entrants face greater challenges.

Risk Assessment and Regulatory Considerations

According to quick analysis, regulatory strategies, product positioning, and internal risk assessments may be key factors prompting WisdomTree to delay or withdraw. As a large asset management firm, WisdomTree needs to balance compliance and market opportunities. With market share already occupied by competitors, new entrants face higher regulatory and market risks.

Signal of Market Saturation

Although capital inflows appear vigorous, this may also be a signal: the market already has sufficient XRP ETF products. Adding new products could face issues like liquidity dispersion and difficulty achieving economies of scale.

The True Implication for the Market

This event does not signify a negation of XRP or the prospects of crypto ETFs but indicates that market competition has entered a new stage. Several points worth noting:

• Market demand still exists: Continuous inflow into other XRP ETFs shows genuine demand
• Increased competition: Leading institutions have already gained advantages, making it harder for latecomers to enter
• Difficulty in product differentiation: Spot XRP ETFs tend to have similar product forms, making differentiation challenging
• Stricter risk assessments: Large asset managers may adopt more cautious evaluations of crypto asset risks

Summary

WisdomTree’s withdrawal is a strategic adjustment at a stage, not a signal of market demand. It reflects the transition of the crypto ETF track from a blue ocean to a red ocean—early entrants gain first-mover advantages, while later entrants need to evaluate risks and returns more carefully. The capital performance of XRP ETF market remains robust, but this also indicates that the competitive landscape has been formed, and opportunities for new players are shrinking. The future development of this track may shift from increasing participant numbers to product innovation and differentiation.