Why WisdomTree pulled its XRP ETF just as institutional demand peaked

In the first week of 2026, XRP has taken center stage, becoming one of the most talked-about assets in the market.

Analysts are calling it the “hottest trade” of the year, as it quickly outpaced Bitcoin’s early gains thanks to strong ETF inflows and its appeal as a less crowded alternative.

But just as the momentum reached a fever pitch, a sudden regulatory U-turn has reminded investors that institutional adoption is rarely a straight line.

WisdomTree withdraws its XRP ETF filing

According to an RW filing with the U.S. SEC, WisdomTree has formally withdrawn its registration statement for the WisdomTree XRP Fund (Form S-1).

While “withdrawal” might sound like hitting a simple delete button, invoking Rule 477 serves as a strategic legal safeguard.

Under the Securities Act of 1933, this rule lets an issuer pull a registration statement before it becomes effective and before any securities are sold.

In this case, WisdomTree withdrew its Form S-1, originally filed on 2nd December 2024.

By asking the Commission to withdraw “all exhibits and amendments,” WisdomTree has also reset its regulatory clock.

This move also stops the SEC from issuing a formal “order of stop” or a public rejection, outcomes that could create a lasting negative precedent for the firm’s future crypto ambitions.

It noted,  

Is WisdomTree following BlackRock?

In the meantime, it can be said that WisdomTree’s retreat aligns with the standards set by BlackRock, though there’s no clear evidence to support that.

Despite the frenzy of the 2026 altcoin ETF rush, BlackRock has remained absent from the XRP and Solana [SOL] race, appearing content to maintain its dominance solely within the Bitcoin [BTC] and Ethereum [ETH] markets.

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

XRP ETF and price analysis

On the 6th of January alone, XRP ETFs recorded $19.12 million in net inflows, with Franklin Templeton’s XRPZ recording $7.35 million in inflows, followed by Canary’s XRPC  with $6.49 million and Bitwise with $3.54 million.

Yet, despite a Cumulative Total Net Inflow sitting at a staggering $1.25 billion, the asset’s price action tells a different story.

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

However, while some institutions are pulling back, others remain historically bullish.

In a significant note to clients last year, Standard Chartered issued one of the most aggressive calls for the altcoin, setting a bold price target of $8 by the end of 2026.

Geoff Kendrick, the bank’s Head of Digital Assets Research, put it best when he said, 

With an $8 target implying approximately 300% upside from current support levels, the stakes for 2026 couldn’t be higher.

Final Thoughts

• WisdomTree’s retreat reminds the market that not every institution sees XRP’s breakout the same way, at least not yet.
• The tension between soaring ETF inflows and weakening spot prices signals a market still searching for equilibrium.