According to the latest news from the crypto world, 21Shares has just asked the SEC to give the green light to spot ETFs on XRP.
The provider of exchange-traded products is urging the supervisory commission bodies to expand the offering of regulated products dedicated to digital assets.
In the meantime Ripple is still facing its own legal feud with the SEC, with potential complications for 21Shares’ application.
Let’s see all the details below.
Summary
21Shares approaches the SEC to request approval of XRP crypto ETFs
21Shares, the largest global provider of ETP, is strongly focusing on the crypto world by asking the SEC to approve XRP ETFs.
With an S-1 statement to the United States federal Commission for securities and exchanges, the financial institution has proposed the introduction of a new speculative crypto product.
The associated fund, called 21Shares Core XRP Trust, will be listed on the American exchange Cboe BZX, with Coinbase acting as the custodian.
This move by 21Shares aims to replicate the same success achieved with the Bitcoin crypto ETFs, which to date boast an AUM of 69.4 billion dollars.
The speculative interest in XRP and the Ripple world could indeed bring new fees to the Zurich-based manager of exchange-traded products.
Obviously, we will first have to wait for a response from the SEC, which will probably try to oppose, especially in the event of a victory by Kamala Harris in the US presidential elections.
The final feedback will likely arrive by the first half of 2025.
According to a spokesperson from 21Shares, the application for a bull negotiable product on XRP reflects the expansion of interest in bear crypto assets.
Here are the exact words:
“21Shares remains committed to working to expand U.S. investors’ access to the cryptocurrency asset class and we look forward to leading innovation in the United States”.
We remind you that other companies like Canary Capital and Bitwise have also asked the SEC for the liberalization of trading for ETFs on XRP.
The lawsuit between SEC and XRP continues: possible hindrance for the crypto
Obviously the response of the SEC to the request of 21Shares for an XRP ETF will be subject to the outcome of the legal case between Ripple and the Commission itself.
By now this historic dispute has been ongoing since December 2020, ever since the SEC accused the crypto company of conducting an unregistered securities offering.
Over the years, the courts have sided with Ripple, defending it from the bullismo of Gary Gensler.
Judge Annalisa Torres expressed her opinion on the matter in July 2023, stating that XRP is not a security token and therefore does not fall under the category of unregistered securities.
Despite this, the SEC has tried multiple times to oppose the ruling, seeking damages and fines from the company of Brad Garlinghouse.
In August of last year, Ripple was indeed ordered to pay 125 million dollars to the U.S. Commission, having violated the principle of institutional sales.
Now, Ripple and SEC are still in conflict through legal channels, with both seeking to appeal Judge Torres’s decisions.
Clearly, until the issue is definitively resolved, it is excluded that an XRP ETF at 21Shares can be approved.
To favor an imminent approval scenario, one would observe a restructuring of the components of the federal entity.
In this regard, a victory in the US elections by Donald Trump could fuel this hypothesis, with a clearly bull background for the crypto XRP.
The interest of the institutional world in crypto ETFs
The interest of institutional investors like 21Shares in crypto ETFs is not limited to XRP but also concerns other tokens.
Since the SEC approved 11 spot ETF Bitcoin in January of this year, we have seen an increase in demand for regulated crypto products.
In July, 8 different investment options landed on the market for Ethereum, although they have not yet recorded significant results.
VanEck recently requested approval from federal entities for the inclusion of Solana among the regulated crypto assets.
Canary Capital has instead moved to allow the trading of Litecoin among the products traded on the USA exchanges.
Now 21Shares and other issuers are focusing on offering the major altcoin crypto, anticipating a possible altseason ahead.
For example, SOL has grown by 287% compared to the prices of a year ago, attracting a wide range of external investors.
The potential bull performance of currencies like XRP would indeed justify the gain of significant exchange fees for the providers.
In 2025, a significant recovery of the altcoin sector is expected, which in recent months has suffered from the emancipation of BTC and geopolitical/macroeconomic tensions.
21shares and the records set with the spot Bitcoin ETF
21Shares and the other issuers of exchange-traded products, follow the great success achieved with Bitcoin ETFs since the beginning of the year.
The choice to pour into assets like XRP is indeed based on the hope of being able to replicate even just a part of the positive performances recorded.
The growth of exchange-traded funds on Bitcoin is indeed the largest ever in the ETF field, with more than 50 billion dollars absorbed in just 3 months since the launch.
In the last few weeks, we also notice an excellent positive momentum, with 13 days of positive inflow and only 2 of negative outflow.
These data are a good omen for a push for the approval of an XRP ETF.
21Shares with Akr Invest ranks 4th for Net Assets on Bitcoin ETFs, behind only Fidelity, Grayscale, and BlackRock.
The company holds the record as the largest provider of investment products in the crypto world, with a wide range of ETPs available.
The offer includes dozens of single-asset crypto investments, and numerous diversified indices, in addition to staking and inverse funds.
Now the challenge is to also open up to XRP with an ETF that holds the cryptocurrency as a real underlying for trading.
Appointment in 2025 for the response of the SEC.
