21Shares has filed for a spot XRP ETF with the SEC, aiming to offer indirect access to XRP through conventional brokerage accounts.
Asset management company 21Shares has filed for a spot XRP exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). On November 1, 21Shares submitted its S-1 form to register the Core XRP Trust shares. This fund is set to be listed on the Cboe BZX Exchange. However, as previously indicated, the fund’s most significant investment will be held in Coinbase, the largest crypto exchange in the U.S., which will serve as the fund’s custodian.
21Shares has already managed to list a spot BTC and ETH ETF this year after the green light from the SEC. Its bitcoin ETF, ARKB, created in collaboration with Cathie Wood’s Ark Invest, has gathered $2.6 billion in net assets. However, the Ethereum ETF has risen to $21.8 million in CETH.
The action by 21Shares comes as companies are increasingly exploring spot XRP ETFs. On October 9, Canary Capital lodged a registration statement at the SEC of its spot XRP ETF. Interestingly, this is the first time Canary Capital is trying to float an ETF. Bitwise Asset Management filed for an XRP Exchange Traded Product (ETP) registration just a few days before that. Both companies are eager to launch their XRP ETFs to the market soon.
21Shares Clarifies Indirect Access to XRP Through Trust
In response to this development, 21Shares pointed out that its trust does not offer investors direct access to XRP. However, it indirectly allows for trading in XRP through a conventional brokerage account. This approach is designed to reduce the obstacles and the exposure that are usually inherent when one is directly owning or trading XRP.
Despite the enthusiasm, the prospects for an XRP ETF approval remain uncertain. Currently, the SEC has not approved a spot XRP ETF. This hesitance is mainly attributable to the current litigation that the SEC has with Ripple Labs, the company associated with XRP. Since 2020, the SEC has accused Ripple of making $1.3 billion through sales of XRP, which it said were unregistered.
However, a judgment in 2023 ruled that XRP was not a security when sold programmatically on exchanges. The case is still under appeal, so its regulatory status is still unknown.
Despite these legal challenges, Ripple’s CEO, Brad Garlinghouse, remained hopeful about the approval of the XRP ETF. He mentioned the latest approval of Bitcoin and Ethereum ETFs as examples of positive signs. The interest from firms like Canary Capital and Bitwise highlights strong institutional demand for expanding XRP investment options, even amid regulatory uncertainties.
