21Shares, a prominent digital asset investment firm, is moving to secure regulatory approval for a spot XRP exchange-traded fund (ETF) through an S-1 registration with the U.S. Securities and Exchange Commission (SEC). Named the 21Shares Core XRP Trust, this proposed fund would be listed on the Cboe BZX Exchange, with Coinbase Custody Trust Company acting as custodian.
In a statement to The Block, a 21Shares spokesperson expressed optimism, noting, “21Shares remains committed to working towards expanding U.S. investor access to the cryptocurrency asset class and driving innovation in the U.S.” This move comes as part of an industry-wide push to expand crypto investment options, following the SEC’s approval of Bitcoin and Ethereum ETFs earlier in 2024. Additional filings include VanEck’s Solana ETF and Canary Capital’s proposal for a Litecoin ETF.
However, a spot XRP ETF approval could encounter hurdles. The SEC is currently in litigation with Ripple Labs, the company behind XRP, after alleging it conducted an unregistered $1.3 billion securities offering. In July 2023, Judge Analisa Torres ruled in favor of Ripple on certain sales methods, while deeming others as securities and ordering Ripple to pay a $125 million fine. Both Ripple and the SEC are appealing parts of the ruling.
With firms like Bitwise and Canary Capital also seeking SEC approval for an XRP ETF, the decision will serve as a significant indicator of the regulatory landscape’s direction on crypto ETFs.
