21Shares Moves Closer to Launching XRP-Linked ETF as SEC Filing Picks Up Steam
- DDDOriginal
- 2024-11-02 06:02:23804browse
Major crypto ETF issuer 21Shares has made a big step toward launching an exchange-traded fund tied to Ripple-associated token XRP, following similar proposals from other asset managers.
Major crypto ETF issuer 21Shares has taken a significant step toward launching an exchange-traded fund pegged to Ripple-affiliated token XRP, following similar proposals from other asset managers.
XRP ETF filings gain momentum
On Friday, 21Shares filed an S-1 form with the United States Securities and Exchange Commission (SEC) — a requirement for companies that want to issue a new security and get listed on a public stock exchange.
The proposed 21Shares Core XRP Trust would be listed on the Cboe BZX Exchange if approved. The XRP in the ETF would be custodied by Coinbase Custody Trust Company.
“21Shares remains committed to working towards expanding US investor access to the cryptocurrency asset class and we look forward to driving innovation in the U.S.,” the company said in a statement.
21Shares Core XRP Trust will follow the price performance of the underlying XRP token as measured by the recently launched CME CF Ripple-Dollar Real-Time Index. The firm said the XRP investment product is designed to give shareholders a more “cost-efficient way” for investors to gain exposure to XRP compared to buying and holding the crypto themselves.
As earlier reported by ZyCrypto, Bitwise kicked off the race for a spot XRP ETF on Oct. 1. A new asset manager, Canary Capital, later followed suit with its own SEC filing. However, the SEC is yet to approve any spot XRP exchange-traded fund, and the path to approval might be littered with challenges.
XRP ETF: closer, but not yet
As you may be aware, the SEC has been engaged in a legal battle with Ripple for four years after the regulator accused the company of raising $1.3 billion in an unregistered securities offering of the XRP cryptocurrency.
Last year, Judge Analisa Torres of the U.S. District Court for the Southern District of New York ruled that XRP is not a security token on its own. However, she found that Ripple's direct sales to institutional investors constituted securities. Later, in August this year, Judge Torres ordered Ripple to pay a $125 million fine, which is significantly less than the SEC's initial request for $2 billion.
The SEC and Ripple are currently engaged in the appeals process. The regulator is asking the court to reconsider its decisions on both Ripple's exchange sales of XRP and the personal XRP sales of the company's CEO, Brad Garlinghouse, and co-founder Chris Larsen.
Despite the excitement surrounding a potential XRP ETF, the chances of such a product being made available on US exchanges are still very slim. However, Garlinghouse is optimistic that the approval of XRP ETFs is “inevitable.”
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