21Shares Pursues Spot XRP ETF Approval

Investment firm 21Shares is seeking regulatory approval for a spot XRP exchange-traded fund (ETF), following the footsteps of other companies.

On Friday, 21Shares filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC). The fund, named 21Shares Core XRP Trust, aims to be listed on the Cboe BZX Exchange, with Coinbase Custody Trust Company serving as its custodian.

A spokesperson for 21Shares stated, "21Shares remains committed to working towards expanding US investor access to the cryptocurrency asset class, and we look forward to driving innovation in the US."

In recent months, other firms have also been competing for various crypto ETFs after the SEC approved several earlier this year. In January, the SEC granted approval for 11 spot Bitcoin ETFs and subsequently eight Ethereum ETFs. In June, VanEck filed for a Solana ETF, and 21Shares followed with a similar product. Recently, Canary Capital sought SEC approval for a spot Litecoin ETF.

In addition to 21Shares, other companies, including Canary Capital and Bitwise, are also pursuing a spot XRP ETF. To date, the SEC has not approved any spot XRP ETF. The approval process may face hurdles, as the SEC is currently involved in a legal dispute with Ripple, which has been accused of raising $1.3 billion through unregistered sales of XRP, considered a security by the agency.

The ongoing lawsuit between Ripple and the SEC has seen significant developments. Over a year ago, U.S. District Court for the Southern District of New York Judge Analisa Torres ruled that Ripple’s programmatic sales of XRP did not violate securities laws due to a blind bid process. However, she determined that other direct sales to institutional investors did constitute securities transactions. In August, Judge Torres also ordered Ripple to pay $125 million in fines.

Both the SEC and Ripple are currently appealing parts of Judge Torres' ruling.