The XRP ETF market is witnessing significant developments, as institutional interest in XRP remains robust despite ongoing legal challenges. The conflict between the US Securities and Exchange Commission (SEC) and Ripple has not deterred institutions from exploring investment opportunities in XRP. Ripple CEO, Brad Garlinghouse, recently highlighted this in a post on X, presenting the growing interest as a positive outcome for Ripple amidst regulatory hurdles. Let’s delve deeper into the current landscape of XRP institutional investments.
21Shares Files for XRP Spot ETF
In a noteworthy move, 21Shares has filed an application to introduce an XRP-based Exchange Traded Fund (ETF). The proposed fund, named 21Shares Core XRP Trust, will have Coinbase Custody Trust Company as the custodian for its XRP assets. Upon receiving approval, the fund is set to be listed on the Cboe BZX exchange, marking a significant step forward in the XRP ETF space.
21Shares is not the only entity expressing interest in launching an XRP-focused ETF. Other prominent players, such as Canary Capital and Bitwise, are also planning to introduce similar investment products. This trend indicates a growing confidence among institutional investors in XRP’s potential, despite the unresolved legal issues surrounding Ripple.
Garlinghouse’s recent post on X emphasized that a number of institutional players are eager to invest in XRP, undeterred by Ripple’s ongoing legal battle with the SEC. Notably, three out of four filings for XRP institutional products last month were submitted after the SEC’s decision to appeal a favorable ruling for Ripple from a Federal court. This ruling supported Ripple’s stance that XRP should not be classified as a security.
The Ripple CEO also mentioned that major financial firms like Grayscale Investments are keenly preparing to enter the XRP ETF market. Reports suggest that Grayscale is considering converting its multi-asset fund, which presently includes XRP, into an XRP spot-based ETF. Garlinghouse framed this surge in institutional investment as a strategic win for Ripple against the regulator, suggesting that the SEC’s ongoing opposition could potentially undermine its credibility within the crypto industry.
To sum up, the increasing number of XRP ETF filings is a testament to the enhanced institutional interest in XRP, despite the persistent regulatory challenges. This trend underscores the growing recognition of XRP’s value proposition among institutional investors.
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