21Shares has just filed an XRP spot ETF application with the SEC, becoming the third major player to attempt to introduce this type of financial product to the US market.
The American crypto market ready to welcome an XRP ETF!
Yesterday, November 1, 2024, 21Shares officially submitted its S-1 registration statement to the SEC for its “21Shares Core XRP Trust,” which will be listed on the Cboe BZX Exchange.
THE project plans to entrust custody of assets to Coinbase Custody Trust Company, a choice that demonstrates the company's desire to rely on robust institutional infrastructure. This request follows those already filed by Canary Capital and Bitwise, intensifying competition in this growing market segment.
21Shares' strategy aims to provide investors with indirect exposure to XRP, rather than direct access to the cryptocurrency. This prudent approach meets regulatory requirements while making it easier for traditional investors to access the crypto market.
The initiative is part of a broader trend of financial innovation, as the sector sees a surge in requests for crypto ETFs, notably for Solana and Litecoin.
A complex and evolving regulatory context
The 21Shares filing comes in a particularly delicate legal environment, marked by the historic litigation between Ripple and the SEC. Judge Analisa Torres' ruling, which established that programmatic sales of XRP do not constitute financial securities, set an important precedent for the industry.
However, the SEC maintains a cautious stance, having appealed aspects of this decision. The regulator, which recently approved Bitcoin and Ethereum spot ETFs, has not yet clarified its position regarding XRP ETFs.
The SEC could extend its review over several months, reserving the right to postpone its decision or launch a public consultation. The next presidential elections could redefine the outcome of this issue. Donald Trump has also announced that he will replace Gary Gensler, the current president of the SEC, on his first day in the White House if he wins the election.
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