Sat. Nov. 02, 2024 ▪
3
min read ▪ by
21Shares has just filed an XRP spot ETF application with the SEC, becoming the third major player to attempt to introduce this type of financial product to the US market.
The American crypto market ready to welcome an XRP ETF!
Yesterday, November 1, 2024, 21Shares officially submitted its S-1 registration statement to the SEC for its “21Shares Core XRP Trust,” which will be listed on the Cboe BZX exchange.
The project plans to entrust custody of assets to Coinbase Custody Trust Company, a choice that reflects the company’s desire to rely on robust institutional infrastructures. This application follows those already filed by Canary Capital and Bitwise, intensifying competition in this rapidly growing market segment.
21Shares’ strategy aims to provide investors with indirect exposure to XRP, rather than direct access to the cryptocurrency. This prudent approach meets regulatory requirements while making it easier for traditional investors to access the cryptocurrency market.
The initiative is part of a broader trend of financial innovation, as the industry sees a proliferation of applications for crypto ETFs, particularly for Solana and Litecoin.
A complex and evolving regulatory context
The 21Shares filing comes in a particularly delicate legal environment, marked by the historic dispute between Ripple and the SEC. Judge Analisa Torres’ ruling, which established that programmatic sales of XRP do not constitute financial securities, set an important precedent for the industry.
The SEC remains cautious, however, having appealed certain aspects of this decision. The regulator, which recently approved Bitcoin and Ethereum spot ETFs, has yet to clarify its position regarding XRP ETFs.
The SEC could extend its review for several months, reserving the right to postpone its decision or launch a public consultation. The next presidential elections could redefine the outcome of this affair. Donald Trump also announced that he would replace Gary Gensler, the current chairman of the SEC, on his first day in the White House if he wins the election.
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Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
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The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.
