More asset managers are joining the XRP ETF race with 21Shares throwing its hat in the ring to double down on its Bitcoin and Ethereum ETF
Investment asset management firm 21Shares has decided to join Canary Capital and Bitwise in pursuing a spot XRP ETF listing. It applied with the United States Securities and Exchange Commission (SEC) on November 1. These daily submissions might pressure the regulator to consider approving the offering.
21Shares Core XRP Trust Awaits SEC Response
A spot XRP ETF will offer investors direct exposure to XRP without all the potential risks associated with crypto investments. The companies that have submitted a filing are seeking to track the performance of XRP. 21Shares has dubbed the intended product ’21Shares Core XRP Trust.’
According to a company spokesperson, “21Shares remains committed to working towards expanding US investor access to the cryptocurrency asset class, and we look forward to driving innovation in the US.”
The 21Shares Core XRP Trust will trade on the Cboe BZX Exchange, while Coinbase Custody Trust Company will serve as its custodian.
Generally, institutional investors push for crypto-based products with lesser or no risks attached. As soon as the SEC approved spot Bitcoin ETFs, these firms saw the possibility of other crypto ETFs. So far, an Ethereum ETF has followed, one of which 21Shares is also an issuer.
Likely Fate of The 21Shares XRP ETF
Hopefully, this application may take a favorable turn, better than the Solana ETF filing that 21Shares submitted to the SEC in June. The asset manager followed in VanEck’s footsteps, but both their applications were pulled down from the Cboe website. The XRP ETF filing may differ, especially as the underlying cryptocurrency has eventually gained regulatory clarity.
The SEC did not contest Judge Analisa Torres’ ruling that XRP is not security. This suggests that the Commission has come to terms with XRP’s non-security status. If the SEC greenlights the application, it will join the 21Shares Ripple XRP ETP (AXRP), a Switzerland-domiciled crypto ETF that tracks XRP’s performance and provides investors with exposure to the coin.
For now, the Commission has not released any official information about Bitwise and Canary Capital’s respective XRP ETF applications.
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