21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
|- 21Shares joins two other investment firms to submit a filing for an XRP ETF.
- Crypto community members share thoughts on potential approval of an XRP ETF, considering SEC's appeal against Judge Torres's Ripple ruling.
- The upcoming US presidential elections could be a major determinant of whether the ETF gets approved.
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
XRP gains more institutional attention with 21Shares ETF filing
Investment firm 21Shares joined the list of companies seeking approval for a spot XRP ETF in the US after filing an S-1 registration statement for the products on Friday.
The fund, known as the 21Shares Core XRP Trust, will track the spot price of XRP without granting investors direct access to the cryptocurrency.
The Trust aims to list on the Cboe BZX Exchange and will be measured using the CME CF Ripple Benchmark. Additionally, it will be custodied on the Coinbase Custody Trust Company.
21Shares XRP ETF filing sees the firm join Bitwise and Canary Capital as the only asset managers seeking to launch institutional products for the cryptocurrency so far.
Crypto community members expressed concerns about the XRP ETF filing, suggesting that the possibility of its approval may be slim due to ongoing tension between the SEC and Ripple.
The regulator appealed parts of the ruling made by Judge Analisa Torres, who ruled that Ripple's sales of XRP did not constitute securities offerings, ordering the firm to pay a $125 million fine, which is lower than the SEC's $2 billion demand. Many viewed this as a big win for the company and the broader crypto industry before the SEC appealed the decision.
Meanwhile, anticipations have now turned toward the upcoming elections, with several crypto enthusiasts favoring a Donald Trump victory. A win for the Republican candidate could hasten the approval of the XRP ETF, as he promised to replace SEC Chair Gary Gensler if elected as President.
Trump and the Republican party have tried to woo crypto voters through promises of clear and progressive regulation. However, Democrat candidate Kamala Harris and her party have yet to take a clear stance regarding the digital asset industry.
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