Why WisdomTree pulled its XRP ETF just as institutional demand peaked

Within the first week of 2026, XRP has taken middle stage, changing into some of the talked-about belongings available in the market.

Analysts are calling it the “hottest commerce” of the yr, because it rapidly outpaced Bitcoin’s early good points due to robust ETF inflows and its attraction as a much less crowded various.

However simply because the momentum reached a fever pitch, a sudden regulatory U-turn has reminded traders that institutional adoption isn’t a straight line.

WisdomTree withdraws its XRP ETF submitting

In response to an RW filing with the U.S. SEC, WisdomTree has formally withdrawn its registration assertion for the WisdomTree XRP Fund (Kind S-1).

Whereas “withdrawal” may sound like hitting a easy delete button, invoking Rule 477 serves as a strategic authorized safeguard.

Underneath the Securities Act of 1933, this rule lets an issuer pull a registration assertion earlier than it turns into efficient and earlier than any securities are bought.

On this case, WisdomTree withdrew its Kind S-1, initially filed on 2nd December 2024.

By asking the Fee to withdraw “all reveals and amendments,” WisdomTree has additionally reset its regulatory clock.

This transfer additionally stops the SEC from issuing a proper “order of cease” or a public rejection, outcomes that might create an enduring destructive precedent for the agency’s future crypto ambitions.

It famous,  

“The Belief is requesting withdrawal of the Registration Assertion as a result of it has decided to not proceed right now with the providing coated by the Registration Assertion.”

Is WisdomTree following BlackRock?

Within the meantime, it may be mentioned that WisdomTree’s retreat aligns with the requirements set by BlackRock, although there’s no clear proof to assist that.

Regardless of the frenzy of the 2026 altcoin ETF rush, BlackRock has remained absent from the XRP and Solana [SOL] race, showing content material to keep up its dominance solely throughout the Bitcoin [BTC] and Ethereum [ETH] markets.

This comes at a time when XRP ETFs are breaking information.

XRP ETF and value evaluation

On the sixth of January alone, XRP ETFs recorded $19.12 million in internet inflows, with Franklin Templeton’s XRPZ recording $7.35 million in inflows, adopted by Canary’s XRPC  with $6.49 million and Bitwise with $3.54 million.

But, regardless of a Cumulative Whole Internet Influx sitting at a staggering $1.25 billion, the asset’s value motion tells a special story.

At press time, XRP slipped to $2.25, marking a 4.9% drop in simply 24 hours.

Nonetheless, whereas some establishments are pulling again, others stay traditionally bullish.

In a big word to shoppers final yr, Normal Chartered issued some of the aggressive requires the altcoin, setting a daring value goal of $8 by the top of 2026.

Geoff Kendrick, the financial institution’s Head of Digital Belongings Analysis, put it finest when he mentioned, 

“Bettering U.S. regulatory readability has made it simpler for establishments to take publicity and has given Ripple and the XRP ecosystem room to construct with out fixed litigation danger.”

With an $8 goal implying roughly 300% upside from present assist ranges, the stakes for 2026 couldn’t be increased.

Remaining Ideas

• WisdomTree’s retreat reminds the market that not each establishment sees XRP’s breakout the identical means, at the least not but.
• The stress between hovering ETF inflows and weakening spot costs indicators a market nonetheless looking for equilibrium.