21Shares Disrupts The Crypto Market With Its XRP ETF Application

21Shares has just filed for a spot XRP ETF with the SEC, becoming the third major player to attempt to introduce this type of financial product in the American 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 the custody of the assets to Coinbase Custody Trust Company, a choice that reflects the company’s intention to rely on robust institutional infrastructures. This application follows those already filed by Canary Capital and Bitwise, intensifying competition in this rapidly growing market segment.

21Shares’ strategy aims to provide investors with indirect exposure to XRP, rather than direct access to the cryptocurrency. This cautious approach meets regulatory requirements while allowing traditional investors to access the crypto market more easily.

The initiative is part of a broader trend of financial innovation, as the sector sees a proliferation of applications for crypto ETFs, particularly for Solana and Litecoin.

A complex and evolving regulatory context

The filing by 21Shares comes in a particularly delicate legal environment, marked by the historic litigation between Ripple and the SEC. The decision by Judge Analisa Torres, who established that programmatic sales of XRP do not constitute financial securities, has created a significant precedent for the sector.

However, the SEC maintains a cautious position, having appealed certain aspects of this decision. The regulatory body, which has recently approved Bitcoin and Ethereum spot ETFs, has not yet clarified its position regarding XRP ETFs.

The SEC could extend its review for several months, reserving the right to postpone its decision or launch a public consultation. The upcoming presidential elections could redefine the outcome of this case. Donald Trump has also announced that he would replace Gary Gensler, the current chairman of the SEC, on his first day in the White House if he wins the election.