Investment firm 21Shares submitted a request to the U.S. Securities and Exchange Commission (SEC) for approval to launch a spot XRP XRP/USD exchange-traded fund (ETF).
What Happened: 21Shares filed an S-1 registration statement with the SEC on Friday proposing a fund, named the 21Shares Core XRP Trust to be listed on the Cboe BZX Exchange. Coinbase Custody Trust Company is expected to serve as the fund’s custodian.
This move is part of 21Shares’ ongoing efforts to expand U.S. investor access to the cryptocurrency asset class. The firm joins a growing list of companies competing for different crypto ETFs, following the SEC’s initial approval of crypto ETFs earlier this year.
The Block reported that Canary Capital and Bitwise are among the other firms applying for a spot XRP ETF despite possible challenges.
The SEC has previously been involved in a legal dispute with Ripple, accusing the company of raising $1.3 billion through the sale of XRP, which it considers an unregistered security. The case between Ripple and the SEC is still ongoing.
Also Read: BlackRock’s Bitcoin ETF Crosses 1 Million BTC In Assets Under Management
Why It Matters: The recent move by 21Shares to seek approval for an XRP ETF indicates a growing trend among investment firms to broaden investor access to the cryptocurrency market through ETFs.
This development comes in the wake of increased interest in cryptocurrency ETFs. In July 2024, Cboe Global Markets Inc. had submitted a request to the SEC to list Solana SOL/USD spot exchange-traded funds applied by VanEck and 21Shares. If approved, these would be the first ETF products linked to Solana.
Read Next:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
