Asset manager 21Shares has filed for approval to launch a spot XRP exchange-traded fund (ETF) in the United States. 21Shares filed the application with the U.S. Securities and Exchange Commission (SEC) on Friday.
The ETF application is called Core XRP Trust and, if approved, aims to provide investors with indirect access to XRP. The fund is planned to have Coinbase Custody provide custody services for XRP assets.
This news comes after UK-based asset manager Jupiter Asset Management pulled out of an XRP product managed by 21Shares seven months ago due to compliance concerns.
SEC's crypto ETF policy and Ripple lawsuit
While the SEC has recently approved spot Bitcoin and Ethereum ETFs, it has yet to respond to applications for an XRP ETF. This is believed to be due to the SEC’s ongoing legal battle with Ripple Labs. A federal judge previously ruled that XRP was not a security in programmatic sales on exchanges, but that decision is currently under appeal.
In August, Ripple was forced to pay a $125 million fine as part of its ongoing legal battle with the SEC. Judge Torres upheld the fine, finding that Ripple’s institutional sales violated federal securities laws.
XRP ETF excitement in the markets
XRP ETF expectations have been on the agenda for a while. In November 2023, a fake application called “BlackRock iShares XRP Trust” was made, causing a temporary increase in the XRP price. However, the application was soon denied.
Starting in early 2024, other asset managers such as VanEck and Canary Capital have also filed for spot Solana and Litecoin ETFs. These steps aim to expand cryptocurrency investment options in regulated markets.
Future ETF filings and political uncertainties
While the SEC is still evaluating these applications, it is anticipated that any delays or decisions could extend into the new administration. It is anticipated that there could be a change in SEC leadership if Kamala Harris or Donald Trump wins the 2024 presidential election.
Meanwhile, interest in XRP continues to grow. Bitwise filed an XRP ETF trust application in Delaware on September 30. The Bitwise XRP ETF application was supported by documents listing CSC Delaware Trust Company as the registered agent.
The SEC’s decisions on Ripple and other cryptocurrencies continue to be decisive for the markets. The presence of XRP as a regulated investment vehicle continues to attract investors’ attention and provides important signals about the future of crypto markets.
Stay tuned for new information.