Hopes for XRP ETF grow: 21Shares files for SEC approval
21Shares is the third company to apply to the U. S. Securities and Exchange Commission for permission to create an #XRP #ETF , along with Bitwise and Canary Capital.
This also follows statements from Ripple CEO Brad Garlinghouse, who recently called an XRP ETF "inevitable" and suggested a growing demand for such a product.
#Bitcoin and Ethereum ETFs are already gaining momentum and are a promising precedent for XRP. However, the path to SEC approval of XRP ETFs will not be easy, given the SEC's scrutiny and the long-running legal battle with Ripple Labs over the classification of XRP.
The SEC claims that Ripple's sales of XRP are unregistered securities, and Ripple is challenging their classification.
last year, Judge Analisa Torres of the U. S. District Court for the Southern District of New York ruled in part that some programmatic sales of XRP do not violate securities laws because of their "blind bet" structure. However, it also ruled that direct sales by institutional investors do constitute securities.
XRP ETF dreams: will SEC resistance hold back the next wave of #cryptocurrency ETFs?
Interest in cryptocurrency ETFs is growing, but the SEC's reluctance to approve XRP-related products could complicate the application process.
After the SEC approved the first cryptocurrency ETF earlier this year, the latest filing is part of a broader wave of interest from companies looking to create cryptocurrency ETFs in the U. S. In January, the SEC approved 11 bitcoin ETFs, followed shortly thereafter by eight ethereum ETFs. Since then, companies such as VanEck and 21Shares have filed applications to create ETFs related to cryptocurrencies such as Solana and Litecoin.
Following the approval of bitcoin and Ethereum ETFs, industry analysts see the potential for XRP ETFs as part of the next wave of cryptocurrency financial products in the U. S. market.
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