21Shares files S-1 registration statement with the SEC for a XRP Spot ETF
Investment firm 21Shares has filed an S-1 registration statement with the US Securities and Exchange Commission for an XRP Spot ETF, marking a new milestone in the race for crypto ETFs in the US. The fund, named “21Shares Core XRP Trust,” will be listed on the Cboe BZX Exchange, with custody of the assets being handled by Coinbase Custody Trust Company.
A spokesperson for 21Shares expressed the company’s ambition to expand access to crypto assets for US investors, demonstrating a commitment to fostering innovation within the domestic market. This filing comes at a time when interest in cryptocurrency funds is rapidly growing, especially after the SEC’s historic approval of the first crypto ETFs earlier this year.
Intense competition in the crypto ETF market
Since the approval of 11 Bitcoin Spot ETFs in January and eight Ethereum ETFs shortly after, several companies have entered the battle to obtain regulatory approval. In June, VanEck filed for a Solana ETF, followed quickly by 21Shares with a similar product. Canary Capital also tried its luck last month with a Litecoin spot ETF application, and yesterday with a Solana ETF. The increasing interest in these funds reflects a paradigm shift within the US financial sector, where crypto investments are becoming more accessible and standardized. Other players such as Canary Capital and Bitwise are also seeking to introduce an XRP spot ETF, but no such applications have been approved by the SEC yet.
Ripple and the SEC’s regulatory challenge: a long battle
The authorization of an XRP ETF, however, faces a complex dynamic largely due to the ongoing legal battle between the SEC and Ripple for several years. The agency accuses Ripple of raising $1.3 billion through the sale of XRP, which is considered an unregistered security under SEC criteria.
This landmark case, currently in the Southern District of New York court, has already seen Judge Analisa Torres rule that certain XRP sales, known as “programmatic” and conducted through blind auction processes, do not violate securities laws. However, direct sales to institutional investors were considered securities transactions, resulting in a $125 million fine for Ripple last August.
The prospects of an XRP ETF and the evolution of US regulations
As the SEC and Ripple seek to appeal certain parts of Judge Torres’ decision, industry participants are closely monitoring the outcome of this case. A favorable decision could finally pave the way for the approval of an XRP ETF, setting a precedent for other crypto funds in the US. In this context, 21Shares and its competitors play a crucial role in trying to democratize access to digital assets for US investors, despite an uncertain regulatory environment.
