In an important step for cryptocurrency investing, 21Shares has applied with the U.S. Securities and Exchange Commission (SEC) to list its spot XRP exchange-traded fund (ETF) on the Cboe BZX Exchange. The application follows similar moves by Bitwise and Canary Capital and marks 21Shares as the third asset manager aiming to introduce a spot XRP ETF in the United States. The 21Shares XRP ETF application could pave the way for other cryptocurrency investment opportunities.
21Shares’ strategic entry into the spot XRP market
On November 1, 21Shares officially filed Form S-1 with the SEC for Core XRP Trust, an investment vehicle intended to provide investors with indirect exposure to XRP. Although the ETF does not directly hold XRP tokens, investors can participate in the XRP market through a regulated and accessible platform. If the SEC approves the 21Shares XRP ETF application, Coinbase Custody Trust Company will serve as the official custodian of the XRP in the trust.
SEC’s cautious stance on spot ETFs
The SEC’s decision on 21Shares’ application remains uncertain. Despite approving Bitcoin and Ethereum spot ETFs this year, regulators have yet to respond to the spot XRP proposal. This hesitation may stem from the SEC’s ongoing lawsuit against Ripple Labs. A federal court previously ruled that sales of XRP on exchanges were not securities. As appeals continue, the regulatory environment for the XRP ETF is becoming more complex and evolving. The 21Shares XRP ETF application is part of this changing landscape.
Asset Manager Trends: Expanding Beyond Bitcoin and Ethereum ETFs
Since approving a spot Bitcoin ETF in January, various asset managers have explored ETFs for other cryptocurrency assets. In addition to XRP, Solana and Litecoin ETF applications were also received, reflecting the industry’s push for a variety of cryptocurrency-based investment products. VanEck, 21Shares and Canary Capital are among the major players looking to capitalize on the growing demand for spot cryptocurrency ETFs involving assets other than Bitcoin and Ethereum. The 21Shares XRP ETF application marks a key moment in this trend.
Potential changes in SEC leadership could impact approval process
The regulatory approach to applications for these ETFs may change depending on the outcome of the 2024 US election. Some political analysts suggest that new SEC leadership could emerge if US presidential election rivals Kamala Harris or Donald Trump replace current SEC Chairman Gary Gensler. This possibility has sparked speculation that the SEC’s stance on cryptocurrency-related investment products could evolve into a new administration perspective.
What’s next for 21Shares’ XRP ETF proposal?
The SEC may postpone a decision, open the matter for public comment, or approve the application. The timeline for these measures could extend by several months, creating an uncertain environment for asset managers and investors eager to introduce new cryptocurrency ETFs. If approved, the 21Shares XRP ETF application could open the door to a wider audience and further legitimize the cryptocurrency asset’s presence in mainstream financial markets.
conclusion
As interest in cryptocurrency ETFs grows, 21Shares’ move to file a spot XRP ETF reflects the growing demand for digital asset investments and current regulatory hurdles. As the SEC continues to review these applications, the results will likely set the tone for future cryptocurrency-based ETFs and investment opportunities in the United States. The 21Shares XRP ETF application form plays a pivotal role in this ongoing process.
Get the latest news!
Get the best cryptocurrency insights every week. No spam or ads. Only the best updates are provided. Subscribe now!
