WisdomTree Abruptly Withdraws Spot XRP ETF Filing Amid Token’s 6% Plunge

Another day, another regulatory retreat. WisdomTree just yanked its application for a spot XRP exchange-traded fund—no explanation, no fanfare. The move lands as the digital asset itself stumbles, shedding value in a market that's never short on volatility.

The Filing Vanishes

Poof. Gone. The paperwork for a fund that would have tracked XRP's price directly disappeared from the regulatory docket. It's a stark reversal for a firm that's been pushing deeper into crypto. These filings aren't cheap or easy—pulling one signals a major reassessment, either of the odds or the appetite.

XRP Feels the Pressure

Coincidence? Unlikely. The token took a hit, sliding sharply as news of the withdrawal circulated. It's the classic crypto chicken-and-egg: did the price drop cause the pullback, or did the pullback trigger the sell-off? Either way, it highlights the fragile sentiment clinging to assets still waiting for their mainstream financial moment.

The Bigger Picture for Crypto ETFs

This isn't just about one token. The saga throws a bucket of cold water on the narrative that a wave of single-asset crypto ETFs is imminent. Regulators are moving at their own pace—glacial, by crypto standards. Every withdrawal like this reinforces the wall between digital assets and traditional finance, a wall that only seems to get higher despite all the talk of bridges.

So much for 'institutional adoption' when the institutions keep getting cold feet. For now, the dream of an XRP ETF sits on the shelf, right next to promises of low fees and rational market behavior.

WisdomTree withdrawal sparks confusion as XRP ETF products rake over $1 billion

According to data compiled by SoSoValue, US-based spot XRP (exchange-traded fund) ETFs have collectively recorded over $1.25 billion in total inflows since their launch. On Tuesday alone, net inflows totaled $19.12 million, with Franklin Templeton’s XRPZ collecting $7.35 million in new capital. Canary’s XRPC and Bitwise’s XRP ETFs followed with over $10 million combined.

With all signs showing a market of sustained investor demand, WisdomTree has surprisingly decided to pull its application from the race. The SEC’s standard review period for such filings is up to 240 days, meaning a decision on the proposal was anticipated in October 2025. However, the SEC pushed back the decision deadline for WisdomTree’s application, which has now been officially rescinded for reasons only known to the asset manager.

Some netizens have suggested that WisdomTree’s decision is in tandem with the anticipation of asset managers like BlackRock potentially filing their own spot XRP ETF applications. 

“In the industry, this is known as “Clearing the Deck.” It’s a strategic retreat that smaller issuers make when they get intel that a giant (BlackRock or Vanguard) is about to drop a nuclear bomb on the market,” suggested one crypto ETF market observer. “They don’t withdraw a major product just because they changed their mind. You only withdraw an application like this for one reason if you know you can’t compete with the giant that is about to enter.”

XRP price pulls back to $2.28 after heated 2026 start

WisdomTree’s spot XRP ETF application withdrawal may have widened the wound of the token’s bloodbath in the last 24 hours, taking its price below $2.3 after peaking at $2.4. XRP had formed a defined trading base in the $1.77 to $1.95 range before New Year’s Eve, but a charge from bulls helped the coin regain its spot as the fourth largest crypto by market cap. 

According to several market watchers, XRP’s short-term technical indicators spell an uptick in price momentum, but support levels NEAR $2.05 to $2.10 must hold to sustain a rebound. If that support fails, prices could retest lower levels and lead to a drop to $1.9, a level the market last witnessed on January 2. 

XRP price resistance clusters have been formed around the $2.33 to $2.35 range, where the 200-day exponential moving average sits. A breakout above this zone could clear the path for $2.64 and potentially $3. 

XRP $3.55 This dip is simply harvesting power. pic.twitter.com/5pTJ6WMiey

— CryptoPhoenix27 (@CharlesMcCull27) January 6, 2026

Commentator ‘Steph is Crypto’ drew a comparison between the current price patterns and the 2017 XRP market cycle on X, noting that in both instances, periods of consolidation were followed by corrective movements forming a falling wedge structure. 

The resolution of that pattern in 2017 started with a reset, which preceded a breakout phase that took XRP from $0.23 to a then all-time-high price level of $2.28.

“That same setup is visible today. The corrective structure looks complete, downside momentum has faded, and XRP is now breaking out of the same type of compression zone that preceded the 2017 rally,” the trader explained.

Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.