XRP ETF: The Final Nail in the Coffin for Anti-Crypto Regulators

The filing for a Spot XRP exchange-traded fund (ETF) by 21Shares has sparked renewed interest in Ripple (XRP). This move, along with strategy adjustments from other institutions, has led to optimism about XRP's market potential. The U.S. SEC now has 20 days to respond to this pivotal development.

Key Takeaways

Bloomberg's ETF analyst, Eric Balchunas, announced that 21Shares has officially triggered the approval process for its Spot XRP ETF.
Franklin Templeton, Grayscale, and Canary Capital are also expediting their ETF approval filings.
The recent developments have reignited interest in Ripple (XRP), pushing its price to a notable increase.

21Shares on spot XRP ETF

21Shares Takes Action on XRP ETF

An exciting update emerged when Eric Balchunas, Bloomberg’s Senior ETF Analyst, confirmed that 21Shares has officially “dropped an 8(a)” filing. This action has set a 20-day countdown for the U.S. Securities and Exchange Commission (SEC) to either approve or intervene. Following this announcement, XRP saw a price increase of over 6%, reaching $2.32. This surge reflects a renewed sense of confidence among investors and highlights a significant moment for Ripple regarding its path to mainstream acceptance.

The amendment filed, known as Amendment No. 3 to Form S-1, falls under Section 8(a) of the Securities Act of 1933. If the SEC remains silent during this period, the ETF could automatically be approved.

Other Institutions Speed Up Their ETF Processes

Following 21Shares' positive moves, other significant players in the market, such as Franklin Templeton and Grayscale, have also streamlined their own ETF applications to hasten the approval process. Should XRP gain approval, it will join Bitcoin (BTC) and Ethereum (ETH) in the Spot ETF category, enhancing liquidity and fostering greater confidence among institutional investors.

XRP-related ETF activities have already begun to gain momentum internationally. Recent data indicates that numerous funds, including the Teucrium 2x Long Daily XRP ETF, Volatility Shares XRP ETF, Rex-Osprey, ProShares Ultra, and Purpose XRP ETF are actively trading and drawing considerable inflows. In fact, the Rex-Osprey XRP ETF, which was launched in September, has already attracted over $114.6 million in assets under management, while Teucrium’s leveraged XRP product has surpassed $384 million in net assets since its launch in April, outperforming the firm's other cryptocurrency offerings.

Further Developments Ahead

The enthusiasm surrounding XRP doesn’t seem to be slowing down. Bloomberg's James Seyffart has recently reported that institutional filings could potentially allow XRP ETFs to begin trading within weeks, which could occur even in the event of a U.S. government shutdown. This situation mirrors how Solana (SOL) ETFs managed to become active earlier this year despite facing similar challenges.

Finally, reflecting on the broader implications, ETF Prime’s Nate Geraci aptly summarized this development, suggesting it represents the “final nail in the coffin of anti-crypto regulators,” signaling a wider acceptance of Ripple across institutional investors.