WisdomTree Cancels XRP ETF Plans, XRP Price Slides to $2.28

WisdomTree pulls the plug on its XRP ETF ambitions—and the market reacts instantly. XRP's price takes a hit, dropping to $2.28 as the news breaks. Another institutional door slams shut, at least for now.

What's Behind the Move?

WisdomTree didn't spell out its reasons, but the timing speaks volumes. Regulatory headwinds for XRP remain fierce, and launching an ETF is a regulatory marathon, not a sprint. The firm likely calculated the legal and compliance hurdles weren't worth the potential payoff—yet.

The Immediate Fallout

Traders wasted no time. The sell-off was swift, slicing the price down to $2.28. It's a classic 'sell the news' event, even when the news is about something *not* happening. The move underscores how tethered crypto prices remain to institutional validation—or the lack thereof.

A Setback, Not a Death Knell

Don't write the obituary just yet. One firm's cold feet doesn't doom the entire asset. Other players are still in the game, watching, waiting for clearer signals from regulators. The path to a spot XRP ETF was always going to be the rockiest of them all.

The Bigger Picture

This is more than a single price drop. It's a stark reminder that Wall Street's embrace is conditional and fickle. Every canceled plan is a vote of no confidence that the market feels deeply. For XRP holders, it's back to the waiting game—a familiar position in this space where finance's 'next big thing' is always just one regulatory whim away.

So WisdomTree walks away, and XRP dips. The finance world's love affair with crypto continues to be a series of dramatic engagements and cold-feet cancellations. Somewhere, a traditional finance exec is probably sipping a martini and muttering, 'I told you so.'

TLDR

• WisdomTree has withdrawn its S-1 registration for a proposed spot XRP ETF.
• The firm filed the withdrawal with the SEC and stated it would not proceed at this time.
• XRP dropped by 6 percent following the news and fell below the $2.30 price level.
• The withdrawal came despite over $1.25 billion in total inflows to XRP-based ETFs.
• Franklin Templeton and other issuers recorded over $19 million in XRP ETF inflows on the same day.

WisdomTree has officially withdrawn its application to launch a spot XRP ETF, leading to a 6% decline in XRP’s price. The firm submitted the withdrawal to the US Securities and Exchange Commission on Tuesday, ending its proposal launched in December 2024. XRP fell to $2.28 shortly after, slipping from its earlier range of $2.4.

XRP ETF Pullback and Filing Details

WisdomTree filed for a spot XRP ETF in December 2024 under FORM S-1 with the SEC to offer direct exposure to XRP. However, the firm has now requested the SEC to withdraw the registration and all supporting documents related to the offering. “The Trust has determined not to proceed at this time,” the filing stated under Rule 477 of Regulation C.

The SEC had extended the review period on the proposal, delaying a final decision to October 2025. Despite this, WisdomTree pulled out early, surprising some observers given growing inflows into XRP-based ETFs. The firm confirmed that no shares had been sold under the registration.

WisdomTree manages over $113 billion in assets and operates several ETFs across different sectors and geographies. The firm did not specify reasons behind the exit, though speculation surrounds market competition. Some market commentators linked the withdrawal to expectations of filings by larger asset managers.

XRP Price Reacts to ETF News

Following the news, xrp price dropped by around 6%, breaking below $2.30 and retracing earlier gains from the first week of January. Before the drop, XRP had moved above the $2.4 mark after consolidating between $1.77 and $1.95 late last year. The $2.25–$2.30 range is now acting as a short-term balance zone.

Technical indicators show short-term support around $2.05 to $2.10, which must hold to prevent further decline. If broken, XRP may retest the $1.90 level, last seen on January 2. Resistance has formed NEAR $2.33–$2.35, aligned with the 200-day exponential moving average.

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

— CryptoPhoenix27 (@CharlesMcCull27) January 6, 2026

XRP remains up by 22% in the past week, with market cap gains of about $25 billion. Despite the ETF-related pullback, buying activity has continued across exchanges. Analysts have described current market structure as showing signs of recovery, supported by steady inflows.

Continued Market Activity and Fund Inflows

Despite WisdomTree’s withdrawal, US-based XRP ETFs recorded $19.12 million in net inflows on January 6 alone. Franklin Templeton’s XRPZ led with $7.35 million, followed by over $10 million combined from Canary’s XRPC and Bitwise’s product. Total net assets for XRP ETFs have reached $1.62 billion.

Data compiled by SoSoValue shows total inflows into spot XRP ETFs now exceed $1.25 billion. Inflows have remained steady through January, reflecting continued institutional interest in XRP products. This trend continues regardless of short-term price fluctuations.

Elsewhere, Ripple’s business operations have expanded through recent acquisitions and service launches. GTreasury, a Ripple-owned unit, acquired finance automation firm Solvexia this week. The goal is to strengthen reporting and analytics across compliance teams.

Ripple also launched spot prime brokerage services in November 2025 for institutional clients in the US. This rollout supports OTC trading across multiple digital assets. The firm continues its strategy of infrastructure expansion, even as market attention shifts to ETF filings.