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Highlights
- 21 Shares has filed with the SEC to offer an XRP ETF.
21Shares has become the latest asset manager to file with the US Securities and Exchange Commission (SEC) to offer an XRP ETF. This again mounts pressure on the Commission to finally respond to the pending applications from the other asset managers who have applied to offer this fund.
21Shares Files For XRP ETF With US SEC
The asset manager filed with the US SEC to offer the ’21Shares Core XRP Trust,’ which will track the performance of the XRP coin and offer institutional investors a means to gain exposure to the crypto. 21Shares joins Bitwise and Canary Capital, which have already filed their registration statements with the Commission to offer an XRP ETF.
It is worth mentioning that 21Shares had previously filed with the US SEC to offer a Spot Solana ETF, although that application looks to have been rejected. The Commission still has doubts over Solana’s security status.
However, the application for the XRP ETF could take a different turn considering that XRP has already gained regularity clarity, with Judge Analisa Torres declaring that XRP isn’t a security in itself.
Moreover, the US SEC didn’t appeal this decision in its appeal against Ripple, indicating that they have accepted XRP’s non-security status. Interestingly, 21shares’s ETF application just comes following the Court of Appeals’ first order in the XRP lawsuit.
Meanwhile, it is worth mentioning that 21Shares is no newcomer to the XRP ecosystem. The asset manager already offers the 21Shares Ripple XRP ETP (AXRP), a crypto ETF domiciled in Switzerland. The fund tracks XRP’s performance and provides investors with exposure to the coin.
Analyzing 21Shares’ S-1 Filing With The US SEC
According to the S-1 filing, the 21Shares’ XRP ETF will be listed on the Cboe BZX Exchange. The fund will only seek to generate returns for investors by tracking the XRP price. This means that the asset manager will not sell XRP at times when the price is high or buy on a dip in expectation of future price increases. They will also not use leverage or derivatives to meet investment objectives as their only focus is on the spot market.
The filing also revealed that the top crypto exchange, Coinbase, will be the custodian for the Trust and hold all the XRP coins, which will form the fund’s asset under management (AuM). Speaking on the advantage of the XRP ETF, 21Shares said,
… The Trust will provide a cost-efficient way for Shareholders to implement strategic and tactical asset allocation strategies that use XRP by investing in the Trust’s Shares rather than purchasing, holding and trading XRP directly.
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