During the first week of 2026, XRP took center stage, becoming one of the most talked about assets on the market.
Analysts are calling it the “hottest trade” of the year as it quickly surpassed Bitcoin’s early gains thanks to strong ETF inflows and its appeal as a less crowded alternative.
But as momentum built, a sudden regulatory reversal reminded investors that institutional adoption is rarely a straight line.
WisdomTree withdraws its XRP ETF deposit
According to a filing by RW with the US SEC, WisdomTree has officially withdrawn its registration statement for the WisdomTree XRP Fund (Form S-1).
Although the term “opt-out” may sound like a simple delete button, invoking Rule 477 provides a strategic legal safeguard.
Under the Securities Act of 1933, this rule allows an issuer to file a registration statement before it becomes effective and before the sale of securities.
In this case, WisdomTree withdrew its Form S-1, originally filed on December 2, 2024.
By asking the Commission to withdraw “all exhibits and amendments,” WisdomTree also reset its regulatory clock.
The move also prevents the SEC from issuing a formal “stop order” or public rejection, outcomes that could set a lasting negative precedent for the company’s future crypto ambitions.
He noted,
“The Trust requests the withdrawal of the registration statement as it has decided not to proceed at this time with the offering covered by the registration statement.”
Is WisdomTree following BlackRock?
In the meantime, WisdomTree’s retreat can be said to align with the standards set by BlackRock, although there is no clear evidence to support this.
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 only in the Bitcoin (BTC) and Ethereum (ETH) markets.
This comes at a time when XRP ETFs are breaking records.
XRP ETF and Price Analysis
On January 6 alone, XRP ETFs saw $19.12 million in net inflows, with Franklin Templeton’s XRPZ seeing $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 of a staggering $1.25 billion, the asset’s price action tells a different story.
At press time, XRP fell to $2.25, a 4.9% decline in just 24 hours.
However, even as some institutions retreat, others remain historically optimistic.
In a major note to clients last year, Standard Chartered made one of the most aggressive calls for the altcoin, setting an aggressive price target of $8 by the end of 2026.
Geoff Kendrick, the bank’s head of digital assets research, said it best when he said:
“Improving US regulatory clarity has made it easier for institutions to gain exposure and given Ripple and the XRP ecosystem room to grow without the risk of constant litigation.”
With a target of $8 implying ~300% upside from current support levels, the stakes for 2026 couldn’t be higher.
Final Thoughts
- WisdomTree’s withdrawal reminds the market that not all institutions view the XRP breakthrough the same way, at least not yet.
- The tension between soaring ETF flows and weakening spot prices indicates that the market is still seeking equilibrium.
