Swiss ETF issuer 21Shares has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) to list an XRP ETF. If approved, 21Shares will be the first to bring a spot XRP ETF to the U.S. market, allowing investors to trade shares that track the price of XRP, the 7th largest cryptocurrency by market cap. This comes despite the ongoing lawsuits between the SEC and Ripple, XRP’s creator. As it seems, 21Shares is quite serious about giving investors access to crypto in the U.S. market.
XRP ETF: A New Frontier in the U.S. Crypto Market
The 21Shares filing introduces the “21Shares Core XRP Trust”, an ETF that tracks the price of XRP through tradable shares on U.S. markets. This is in line with the company’s goal of giving American investors more access to digital assets. “We remain committed to working towards expanding U.S. investor access to the cryptocurrency asset class,” 21Shares said, as they push innovation in the regulated space.
The company, known popularly as the first to launch a Bitcoin and Ethereum ETF in the U.S. wants to expand its crypto offerings. 21Shares is joined by other asset managers like Bitwise and Grayscale in launching an XRP fund. Grayscale previously launched a similar product with Bitcoin and Ethereum and recently launched an XRP Trust, which can be converted into an ETF once approved by the SEC.
Ripple’s legal battle with SEC and the Impact
The SEC’s lawsuit against Ripple over XRP has been going on for years, starting with a $1.3 billion lawsuit for unregistered securities sales. Ripple won a partial victory last year when a judge ruled that programmatic XRP sales to retail investors were not securities.
21Shares to Launch First U.S. XRP ETF Despite SEC Lawsuits
However, the judge ruled that institutional sales were unregistered securities and fined Ripple $125 million instead of the proposed $2 billion. Ripple is still confident in their legal position, with Chief Legal Officer Stuart Alderoty saying the SEC’s appeal may actually benefit the crypto industry by setting clear boundaries.
Despite the XRP legal situation still being unresolved, Ripple CEO Brad Garlinghouse recently said SEC approval of an XRP ETF is “inevitable” given the SEC’s acceptance of Bitcoin and Ethereum ETFs. This is in line with Ripple’s view that the legal outcome will be in their favour and open up more opportunities for XRP-based investment products.
Growing Institutional Interest in XRP
An SEC-approved XRP ETF is a sign of increasing institutional interest in crypto assets through regulated means. 21Shares’ filing is part of the trend of asset managers launching spot crypto ETFs, which could be a game changer for XRP and the broader crypto market.
21Shares to Launch First U.S. XRP ETF Despite SEC Lawsuits
If the SEC approves the 21Shares Core XRP Trust, it will open up more products for retail and help institutional investors get regulated access to the XRP market.
Conclusion
21Shares’ XRP ETF is a big deal in the US crypto ETF space. As Ripple’s lawsuit with the SEC continues, the XRP-regulated products show that the regulators are evolving on digital assets. Investors are waiting to see what happens, if the SEC approves it will be a new wave of XRP adoption and innovation in the US financial system.
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