21Shares Seeks SEC Approval for Spot XRP-ETF

Swiss firm 21Shares has filed an application with the U.S. Securities and Exchange Commission (SEC) using Form S-1 to register an exchange-traded fund based on the cryptocurrency XRP.

The product is expected to be listed on the Cboe BZX platform, though the ticker remains unspecified. Coinbase Custody Trust Company will serve as the custodian for XRP.

“21Shares remains committed to expanding access for American investors to the crypto asset class, and we eagerly anticipate the opportunity to innovate in the U.S.,” the company told The Block.

In June, VanEck filed an application with the SEC to launch a Solana-ETF. That same month, 21Shares submitted a similar document, and in October, Canary Capital joined them. The latter also filed applications for XRP-ETF and Litecoin-ETF.

In October, Bitwise submitted an application to the Commission to launch a spot exchange-traded fund based on XRP.

Since December 2020, the SEC has been engaged in a legal battle against Ripple regarding the status of the cryptocurrency.

In July 2023, the fintech firm achieved a partial victory. The court ruled that programmatic sales and other distributions of the token do not constitute an offer and sale of investment contracts.

The SEC then attempted to challenge the decision, but the court dismissed the Commission’s interlocutory appeal. The agency still has the opportunity to try again. Ripple’s chief legal officer, Stuart Alderoty, expressed confidence that this would not alter the status of XRP.

On August 7, 2024, Judge Analisa Torres fined Ripple $125 million in the ongoing dispute with the SEC. Initially, the agency sought $2 billion.