21Shares has filed for an XRP ETF, showing strong institutional confidence.

The SEC application has marked a key milestone for XRP adoption.

Ripple’s legal issues have not deterred major asset managers from backing XRP.

In a bold move that could reshape the cryptocurrency investment landscape, 21Shares has taken a significant step towards launching an XRP-focused exchange-traded fund (ETF). This development arrives at a time when Ripple Labs is deeply entrenched in its legal battle with the SEC, raising questions about the future trajectory of XRP in regulated markets.

As the crypto community watches closely, the filing of the 21Shares Core XRP Trust with the SEC not only underscores the enduring appeal of XRP among institutional investors but also hints at a broader shift towards greater acceptance of digital assets within traditional financial frameworks. 

21Shares’ XRP ETF Proposal

The timing of this application, amidst Ripple’s legal challenges, adds a layer of complexity to the narrative surrounding XRP’s market stability and growth potential. Leading the charge, 21Shares has submitted an S-1 registration form to the U.S. Securities and Exchange Commission (SEC) for the “21Shares Core XRP Trust.”  Sponsored

If approved, this ETF would be listed on the Cboe BZX Exchange, providing investors with a regulated avenue to gain exposure to XRP without directly purchasing the cryptocurrency. Coinbase Custody Trust Company has been designated as the custodian for the XRP assets within the ETF, ensuring secure and compliant management of the holdings.

This proposal signifies 21Shares’ confidence in XRP’s long-term viability and its potential to attract significant institutional investment. By offering a cost-efficient and regulated investment product, 21Shares aims to lower the barriers for traditional investors looking to diversify their portfolios with cryptocurrency assets. 

The ETF would track the price performance of XRP based on the recently introduced CME CF Ripple-Dollar Real-Time Index, offering a transparent and reliable benchmark for investors. 21Shares is not alone in this endeavor. 

New XRP ETF Contenders Enter the Picture

Canary Capital and Bitwise have also filed for similar XRP-based ETFs, indicating a growing interest among asset managers to capitalize on XRP’s market potential. These filings suggest that despite regulatory uncertainties, major players in the financial industry see value in XRP and are eager to provide investors with more accessible investment products.

Grayscale Investments is also reportedly preparing to convert its multi-asset fund, which includes XRP, into a dedicated XRP spot ETF. This move by Grayscale, a prominent name in crypto asset management, could further legitimize XRP as a mainstream investment vehicle and attract a broader range of institutional investors.

On the Flipside

SEC has yet to approve any XRP-focused ETFs, maintaining regulatory uncertainty.

Ripple’s ongoing lawsuit with the SEC could impact investor confidence in XRP.

Approval of XRP ETFs might face significant legal and procedural hurdles.

Why This Matters

The filing of the 21Shares Core XRP Trust represents a crucial inflection point for XRP’s integration into traditional financial markets. Moreover, the involvement of major asset managers like Canary Capital, Bitwise, and Grayscale underscores the collective confidence in XRP’s long-term prospects, potentially offsetting some of the negative sentiments stemming from Ripple’s legal challenges.

To learn more about the ongoing legal battle between Ripple and the SEC, and what the January 2025 deadline for Ripple’s appeal brief might mean for XRP, read here:Ripple’s SEC Battle Heats Up: What January 2025 Holds for XRPTo learn more about Grayscale’s proposal to convert its Digital Large Cap Fund into a multi-asset ETF that could include XRP, and the SEC’s review process, read here:XRP ETF Moves Closer as SEC Reviews Grayscale’s Proposal

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