In a significant move within the cryptocurrency sector, 21Shares has officially filed for an exchange-traded fund (ETF) focused on XRP with the U.S. Securities and Exchange Commission (SEC). This filing, submitted on Friday, positions 21Shares as the third firm to seek approval for an XRP ETF, following applications from Bitwise and Canary Capital. The proposed fund, named the 21Shares Core XRP Trust, aims to provide institutional investors with a means to gain exposure to Ripple’s native cryptocurrency.
This development comes shortly after Ripple CEO Brad Garlinghouse expressed optimism about the inevitability of an XRP ETF during an interview with Bloomberg. Despite the ongoing legal disputes between Ripple and the SEC—centered around the classification of XRP as a security—interest in crypto ETFs continues to grow. The SEC’s previous rulings have indicated that while XRP itself is not classified as a security, the regulatory body remains cautious in its approach to approving related investment vehicles.
The 21Shares Core XRP Trust is designed to track the performance of XRP and will be listed on the Cboe BZX Exchange, with Coinbase Custody Trust Company serving as the custodian for the fund’s assets. This filing reflects a broader trend among asset managers looking to expand access to cryptocurrency investments through regulated products. Earlier this year, 21Shares also attempted to launch a Solana ETF, although that application faced challenges.
The SEC’s reluctance to approve new ETFs tied to XRP stems from its protracted legal battle with Ripple, which has seen both parties appealing various rulings. Nevertheless, the recent ruling by Judge Analisa Torres—declaring that XRP is not a security in programmatic sales—has provided some clarity that could influence future decisions by the SEC.
If approved, this ETF would mark a significant step for cryptocurrency investment products in the U.S., potentially becoming the third crypto-based ETF launched this year, following successful approvals for Bitcoin and Ethereum ETFs earlier in 2024. As interest in crypto ETFs surges, industry leaders remain hopeful that regulatory frameworks will evolve to accommodate these innovative financial instruments.
