With the new XRP ETF application from 21shares, pressure is mounting on the SEC as investors focus on the potential access to XRP amid ongoing legal battles.
Another XRP ETF filing was withdrawn, putting pressure on the SEC.
21shares, an asset management company specializing in digital assets, submitted an application for the “21shares Core XRP Trust” to the U.S. Securities and Exchange Commission (SEC) on Friday. Filing details:
21shares Core XRP Trust is an exchange-traded fund issuing common shares that are expected to be listed on the Cboe BZX Inc. stock exchange.
This fund aims to track the price of XRP based on daily valuations. Coinbase Custody Trust Company LLC will serve as the custodian, securely holding the fund's XRP holdings at managed storage facilities.
The filing further explains: “The trust is a passive investment vehicle that does not seek to generate profits beyond tracking the price of XRP.” The creation and redemption of shares will be limited to approved financial institutions, known as authorized participants, who will use cash payment methods instead of handling XRP directly.
Designating the trust fund as a "newly emerging growth company" under our JOBS Act allows for certain exemptions from extended reporting obligations, making it easier for investors to access. With the ongoing debate over the regulatory status of XRP, 21shares provides a means for indirect exposure to XRP, designed for managed investment purposes without the complexities of direct asset custody.
In addition to 21shares, Bitwise Asset Management submitted an application for a spot XRP ETF with the SEC on October 2. Bitwise CEO Hunter Horsley described XRP as "one of the most resilient and well-known assets in the space," highlighting its appeal to mainstream investors. Last month, Canary Capital Group LLC also filed for a Canary XRP ETF, providing indirect access to XRP through traditional brokerage firms. Ripple CEO Brad Garlinghouse recently expressed confidence that the SEC will approve spot XRP ETFs next year, noting a shift towards pragmatism in regulatory matters following the SEC's court failures. However, the SEC is still in an ongoing legal dispute with Ripple over XRP.
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