- The offering allows investors to indirectly access XRP on the Cboe BZX Exchange.
- It followed similar applications by Canary Capital and Bitwise.
21Shares is seeking the Securities and Exchange Commission’s (SEC) approval of a spot XRP exchange-traded fund (ETF) amid increasing interest in crypto-focused investment vehicles.
If approved, 21Shares’ Core XRP Trust would be listed on the Cboe BZX Exchange, reportedly allowing investors an indirect way to gain XRP exposure without holding the token directly, SEC’s filing noted. The move by 21Shares followed similar applications from Canary Capital and Bitwise, marking it as the third major asset manager to file for a spot XRP ETF.
The proposed fund’s structure means investors wouldn’t hold XRP directly but would instead benefit from XRP market trends. Should it be approved, Coinbase Custody Trust Company will act as the custodian for the fund’s XRP assets.
See Related: XRP May Hit $0.4500, Only If The Price Holds Above $0.3600
Spot XRP ETF Market Trends
While the SEC approved spot Bitcoin ETFs earlier this year, applications for other spot crypto ETFs, such as XRP, are yet to receive any formal response. Part of this hesitation may be tied to the ongoing lawsuit between the SEC and Ripple Labs.
In July, a federal judge ruled that XRP’s programmatic sales did not classify it as a security. The decision is now under appeal from the SEC, with a cross-appeal from Ripple Labs.
Following the SEC’s January approval of spot Bitcoin ETFs, several firms have begun exploring options to create similar investment products for other major crypto assets. VanEck, 21Shares, and Canary Capital have all submitted filings for a spot Solana ETF, and Canary has also proposed a fund tied to Litecoin, indicating a trend of diversified crypto ETF applications.
Meanwhile, as the regulatory landscape continues to evolve, potential political changes could impact the direction of crypto ETF approvals. High-profile figures such as Democrat Kamala Harris or Republican Donald Trump are often mentioned as could potentially shift regulations.
