Asset management firm 21Shares has submitted a request to the U.S. Securities and Exchange Commission (SEC) to launch a spot XRP exchange-traded fund (ETF).
On Nov. 1, 21Shares filed a Form S-1 with the SEC for its Core XRP Trust, intending for shares to be traded on the Cboe BZX Exchange. Rather than offering direct XRP ownership, the proposed ETF aims to give investors indirect exposure to XRP.
Coinbase Custody Trust Company would serve as the custodian for XRP held in this investment product if approved. Other asset managers, such as Bitwise, have also recently filed for spot XRP ETFs, indicating a growing interest in XRP-based funds.
Although the SEC approved spot Bitcoin and Ether ETFs in 2024, it has yet to decide on spot XRP applications. The regulatory uncertainty surrounding XRP stems from the ongoing legal dispute between the SEC and Ripple Labs. In a recent court decision, a federal judge ruled that XRP sales on exchanges did not constitute securities, but the case is still on appeal.
Following the approval of spot Bitcoin ETFs in January, other firms have been exploring additional crypto assets for similar products. For example, VanEck, 21Shares, and Canary Capital have submitted applications for a spot Solana ETF, with Canary also proposing a Litecoin ETF in October.
The SEC can take months to review ETF applications, potentially extending the decision period or opening a public comment window. Some political analysts believe that if the SEC leadership changes after the next election, it could impact the regulator’s approach to crypto asset funds, with possible successors like Kamala Harris or Donald Trump potentially replacing current SEC Chair Gary Gensler.
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