Like other cryptocurrency companies, 21Shares officially filed with the U.S. Securities and Exchange Commission (SEC) on November 1 to launch a U.S.-based XRP ETF.
If approved, the new fund, named 21Shares Core XRP Trust, would be listed on the Cboe BZX Exchange, with Coinbase Custody Trust Company as the custodian.
21Shares Joins the Crypto ETF Race with Spot XRP ETF Application to the SEC
Through the XRP ETF, investors will be able to track XRP’s performance, offering institutional investors a new way to gain exposure to the asset.
21Shares has become the third company to apply for SEC approval of an XRP ETF, following Bitwise and Canariya Capital.
This move comes after Ripple CEO Brad Garlinghouse recently described an XRP ETF as “inevitable,” hinting at growing demand for this type of product.
Bitcoin and Ethereum ETFs have already gained attention, setting a promising precedent for XRP. However, given regulatory scrutiny on XRP’s classification and Ripple Labs’ ongoing legal battles, SEC approval of an XRP ETF may not be straightforward.
The SEC has argued that Ripple’s sale of XRP constitutes unregistered securities, while Ripple has disputed this classification.
Last year, U.S. District Judge Analisa Torres partially ruled that certain programmatic XRP sales did not violate securities laws due to their blind bid structure. However, she also ruled that direct institutional sales did qualify as securities.
The Dream of an XRP ETF: Will SEC Resistance Block the Next Wave of Crypto ETFs?
Interest in crypto ETFs has surged, but the SEC’s reluctance to approve XRP-related products could complicate the application process.
This application is part of a broader interest in crypto ETFs in the U.S., particularly following the SEC’s approval of the first cryptocurrency ETF earlier this year.
In January, the SEC approved 11 spot Bitcoin ETFs, followed by eight Ethereum ETFs. Since then, companies like VanEck and 21Shares have filed for ETFs linked to additional cryptocurrencies like Solana and Litecoin.
With Bitcoin and Ethereum ETFs now approved, industry analysts see a potential XRP ETF as part of the next wave of cryptocurrency-based financial products for the U.S. market. If approved, it would become the third crypto-based ETF launched in the U.S. in 2024, expanding investment options in the evolving digital asset sector.
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