Asset manager 21Shares has filed an application with the U.S. Securities and Exchange Commission (SEC) to list shares of a spot XRP exchange-traded fund (ETF), marking the third spot XRP ETF application from asset managers this year, following filings by Canary Capital and Bitwise.
XRP ETF Proposal Details
The Nov. 1 filing, a Form S-1 application, proposes 21Shares’ Core XRP Trust shares for listing and trading on the Cboe BZX Exchange. While the fund does not offer direct exposure to XRP, 21Shares claims it provides investors with a way to access the XRP market indirectly. If approved, Coinbase Custody Trust Company would serve as custodian for the trust’s XRP assets.
Other Firms Eyeing Spot XRP ETFs Amid Regulatory Uncertainty
The application arrives in a year where the SEC has, for the first time, approved spot Bitcoin and Ether ETFs. However, the agency has yet to address spot XRP ETF applications from asset managers due to ongoing legal battles with Ripple Labs. Following a federal judge’s ruling that XRP was not a security in its programmatic sales, the case now faces appeals from both the SEC and Ripple.
Expanding Crypto ETF Market
Since the SEC approved spot Bitcoin ETFs in January, additional asset management firms have submitted applications for investment products tied to various cryptocurrencies. Firms including VanEck, 21Shares, and Canary Capital have filed for Solana ETFs, with Canary also proposing a Litecoin ETF in October. The SEC’s response to these applications could be delayed or opened to public comments, pushing back approval timelines into the following year.
Potential Political Shifts Impacting ETF Decisions
Regulatory experts suggest the ETF approval process could be influenced by a possible shift in SEC leadership, as speculation mounts around the 2024 U.S. presidential election. Political analysts have pointed to figures like Democrat Kamala Harris or Republican Donald Trump as potential replacements for SEC Chair Gary Gensler, should either take office.
The spot XRP ETF filing signals further expansion within the crypto ETF landscape, despite ongoing regulatory scrutiny. The industry will closely monitor the SEC’s response, as decisions on these crypto investment products could shape the future of digital asset accessibility in traditional markets.
