In a strategic move signaling the growing momentum in cryptocurrency investments, 21Shares has officially filed with the US Securities and Exchange Commission (SEC) to introduce an Exchange-Traded Fund (ETF) centered around XRP, Ripple’s native digital currency. This development places 21Shares among a cohort of firms striving to tap into the burgeoning interest in crypto ETFs.
21Shares Files For XRP ETF Amid Rising Demand
Today, 21Shares, a prominent manager of crypto assets, submitted an S-1 registration form to the SEC, aiming to establish the 21Shares Core XRP Trust. This initiative follows similar footsteps taken by companies like Canary Capital and Bitwise, highlighting an increasing enthusiasm for crypto ETFs. This surge in interest is buoyed by the successful approvals of Bitcoin and Ethereum ETFs earlier this year.
Interestingly, this filing comes on the heels of Ripple CEO Brad Garlinghouse’s statement to Bloomberg, where he mentioned that an ETF for the token was “inevitable.” Although 21Shares had previously attempted to launch a Spot Solana ETF — an endeavor that was reportedly unsuccessful — the prospects for an XRP ETF seem more promising.
Following the pivotal ruling by Judge Analisa Torres, which determined that XRP is not classified as a security, regulatory clarity has been achieved for XRP. The SEC did not contest this ruling in its appeal against Ripple, indicating an acknowledgment of XRP’s status as a non-security. This regulatory backdrop appears favorable for the approval of 21Shares’s ETF filing, especially in light of the Court of Appeals’ initial order in the XRP lawsuit.
Moreover, 21Shares is no stranger to the XRP ecosystem. The asset manager already oversees the 21Shares Ripple XRP ETP (AXRP), a cryptocurrency ETF based in Switzerland that tracks XRP’s performance, providing investors with exposure to this digital asset.
XRP ETF Comes Amid US Elections
According to the S-1 filing, the 21Shares XRP ETF is set to be listed on the Cboe BZX Exchange, with the primary objective of tracking XRP’s price. Coinbase, a leading cryptocurrency exchange, is designated to hold all of the XRP managed by the fund.
Despite the optimistic outlook expressed by Ripple Labs CEO Brad Garlinghouse, the SEC’s response to these new filings remains uncertain. The upcoming U.S. presidential election could potentially impact crypto regulations, as both candidates, Donald Trump and Kamala Harris, have expressed intentions to revise existing regulatory frameworks for cryptocurrencies. Such changes could pave the way for clearer, more favorable conditions for crypto assets in the future.
If these regulatory adjustments are implemented, they could not only streamline the approval process for new XRP ETF applications but also bolster the chances of approval for other recent filings, including those concerning Solana and Litecoin.
