Thursday , 12 December 2024
Home Cryptocurrency 21Shares files S-1 application for an XRP ETF
Cryptocurrency

21Shares files S-1 application for an XRP ETF

Asset management company 21Shares has joined the list of firms that have filed applications with the US Securities and Exchange Commission (SEC) for a spot XRP exchange-traded fund (ETF).

On Nov. 1, 21Shares submitted an S-1 form to register its Core XRP Trust shares for listing on the Cboe BZX Exchange. Coinbase, the largest crypto exchange in the US, would serve as the fund’s custodian.

Earlier this year, 21Shares successfully launched spot Bitcoin and Ethereum ETFs following SEC approval, including its Bitcoin ETF (ARKB), developed in partnership with Ark Invest. ARKB has since attracted $2.6 billion in net inflows, while its Ethereum ETF (CETH) has gained $21.8 million.

Core XRP Trust

The Core XRP Trust operates as a passive investment vehicle. Its goal is to track the price of XRP without attempting to generate additional returns by buying or selling XRP based on market trends. The Trust will not use leverage, derivatives, or similar strategies for its assets.

Instead, it aims to mirror the performance of the CME CF Ripple-Dollar Reference Rate after factoring in expenses and other liabilities. CF Benchmarks Ltd. calculates this benchmark.

21Shares also clarified that the Trust does not offer direct exposure to XRP. Rather than a direct investment in XRP, the Trust allows investors indirect access to XRP’s market through a traditional brokerage account, reducing the barriers and risks typically associated with holding or transferring XRP directly or purchasing it from an XRP spot market.

XRP ETF

Meanwhile, the chances of an XRP ETF approval are slim, considering the SEC has yet to approve any spot XRP ETFs.

This uncertainty stems from the SEC’s ongoing legal battle with Ripple Labs, the company behind XRP. Since 2020, the financial regulator alleged that Ripple raised $1.3 billion through unregistered XRP sales.

However, a 2023 judgment ruled that XRP was not a security when sold programmatically on exchanges, but the case remains under appeal.

Despite the legal hurdles, Ripple CEO Brad Garlinghouse recently expressed optimism that the SEC will eventually approve an XRP ETF, given its recent approvals for Bitcoin and Ethereum ETFs.

Other asset managers, including Canary Capital and Bitwise, are also pursuing approval for their spot XRP ETFs, signaling strong institutional interest in expanding XRP investment options despite regulatory uncertainty.

The post 21Shares files S-1 application for an XRP ETF appeared first on CryptoSlate.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

ICYMI: BlackRock & Fidelity have collectively bought 500mn USD of ETH in the past 48 hours

Binance had the info (link here for more). In brief:According to Odaily,...

Ten 2025 crypto forecasts, including Bitcoin to $200,000, Ether to $7,000, Solana to $750

Bitwise Asset Management has released its 10 Crypto Predictions for 2025.Info CIA...

How to Use FXGuys’ Trade2Earn to Maximize Your Crypto Profits

Discover how to maximize crypto profits with FX Guys’ Trade2Earn feature.

Global Crypto Trading Trends Reveal Regional and Seasonal Nuances: Coin Metrics

Cryptocurrency trading demonstrates distinct regional and seasonal patterns influenced by regulatory environments,...