21Shares Requests Approval for XRP ETF from US SEC
Asset manager 21Shares has filed an application with the United States Securities and Exchange Commission (SEC) to launch an XRP index fund (ETF). In a filing dated November 1, the company filed Form S-1, indicating its interest in listing the “Core XRP Trust” on the Cboe BZX Exchange.
Although the fund does not offer direct exposure to XRP, it allows investors to indirectly access the cryptocurrency market.
If the SEC approves the request, the Coinbase Custody Trust Company will act as the custodian of the asset, taking care of the secure storage of funds allocated in XRP.
Before 21Shares, other companies such as Bitwise had already filed similar proposals for XRP ETFs, although the SEC has not yet responded to these requests. In 2024, the Commission has already approved spot Bitcoin and Ethereum ETFs. However, it still needs to decide on ETFs for other cryptocurrencies such as XRP and Solana.
The Court Case and Regulatory Status of XRP
The regulatory battle surrounding XRP remains intense. In a recent decision, a federal judge ruled that XRP does not qualify as a security in programmatic sales carried out on exchanges, a decision that brought more security to the XRP market.
The SEC, however, appealed the decision, and Ripple Labs, the company behind XRP, also filed a counter-appeal. The SEC even has the option of opening a public comment period on ETF applications, which could further extend the approval process.
Since the SEC approved the first spot Bitcoin ETF in January, asset managers have begun to expand applications for ETFs related to other cryptocurrencies. VanEck, 21Shares and Canary Capital submitted proposals for Solana ETFs. Meanwhile, Canary Capital also suggested a Litecoin ETF in October.
Decisions on these ETFs could face new challenges if there are changes in SEC leadership. Some political analysts speculate that the SEC's leadership could undergo transformation with the US presidential election approaching.
Potential presidents, such as Democrat Kamala Harris or Republican Donald Trump, could nominate a new president for the Commission if they are elected. This could influence the direction of cryptoasset policy.
With the advance in applications for ETFs for various cryptocurrencies, the expectation of new approvals increases. If the SEC approves the XRP ETF, it could open doors for the inclusion of other assets in the US regulated investment market.