21Shares Files For XRP ETF Amid Rising Demand
In a significant move within the cryptocurrency investment landscape, 21Shares, a prominent crypto asset management firm, has taken a decisive step by filing an S-1 registration form with the US Securities and Exchange Commission (SEC). This filing aims to establish a spot XRP Exchange Traded Fund (ETF), known as the 21Shares Core XRP Trust. By doing so, 21Shares is aligning itself with a growing number of firms that are keen on offering investment products centered around Ripple’s native cryptocurrency, XRP.
This strategic application comes at a time when several other companies, including Canary Capital and Bitwise, are also submitting similar filings, underscoring a burgeoning interest in crypto ETFs. This enthusiasm is fueled by the successful approvals of Bitcoin and Ethereum ETFs earlier this year, setting a precedent for more crypto-based financial products.
The momentum for an XRP ETF has been gaining traction, especially following comments from Ripple CEO Brad Garlinghouse, who recently suggested to Bloomberg that an ETF for XRP was “inevitable.” This anticipation is heightened by the fact that just a week prior to 21Shares’ filing, Garlinghouse’s remarks sparked increased anticipation in the crypto community.
It is worth mentioning that 21Shares had previously attempted to introduce a Spot Solana ETF, a proposal that did not receive the green light from the US SEC. However, the prospects for the XRP ETF appear to be more promising. This optimism stems from a judicial decision by Judge Analisa Torres, who ruled that XRP itself does not qualify as a security. This ruling has provided XRP with much-needed regulatory clarity.
The US SEC’s decision not to challenge this ruling in its ongoing appeal against Ripple further suggests an implicit acceptance of XRP’s status as a non-security. This development strengthens 21Shares’ position as it proceeds with its ETF filing, following closely on the heels of the Court of Appeals’ initial order in the XRP lawsuit.
Notably, 21Shares is no stranger to the XRP ecosystem. The asset manager already oversees the 21Shares Ripple XRP ETP (AXRP) in Switzerland, a crypto ETF designed to track the performance of XRP, thereby offering investors exposure to this digital asset.
XRP ETF Comes Amid US Elections
According to the S-1 filing, the proposed 21Shares XRP ETF will be listed on the Cboe BZX Exchange. Its primary objective is to track the price of XRP, thereby providing investors with a straightforward way to gain exposure to the cryptocurrency. The filing also outlines that Coinbase, a leading cryptocurrency exchange, will be entrusted with the custody of all XRP managed by the fund.
Ripple Labs CEO Brad Garlinghouse remains optimistic about the potential approval of the XRP ETF, though it remains uncertain how the SEC will ultimately respond to these new filings. The regulatory environment is further complicated by the upcoming U.S. presidential election, which could have significant implications for the future of crypto regulation.
Both major candidates, Donald Trump and Kamala Harris, have signaled their intentions to revise existing cryptocurrency regulations. Should these regulatory changes come to fruition, they could pave the way for not only the approval of new XRP ETF applications but also support the approval of other recent filings, including those for cryptocurrencies such as Solana and Litecoin.
In conclusion, as the world of cryptocurrency continues to evolve, 21Shares’ pursuit of an XRP ETF marks a pivotal moment in the ongoing dialogue about digital asset regulation and investment opportunities. The outcome of this filing, coupled with potential regulatory shifts, could significantly influence the landscape of cryptocurrency investment in the near future.
