The Latest News in Crypto: 21Shares Pursues SEC Approval for XRP ETFs 🚀
This year, the cryptocurrency landscape is witnessing significant developments, particularly with 21Shares’ recent move towards securing SEC approval for XRP exchange-traded funds (ETFs). These initiatives signal a growing interest in expanding the availability of regulated digital asset products.
21Shares Takes Steps to Launch XRP ETFs 📈
21Shares, recognized as a leading global provider of exchange-traded products, is actively seeking the SEC’s approval to facilitate the listing of XRP ETFs. Submitting an S-1 registration to the U.S. Securities and Exchange Commission, the firm plans to introduce this new financial product aimed at speculative investors.
The proposed fund, known as the 21Shares Core XRP Trust, is expected to be traded on the Cboe BZX exchange. Coinbase will serve as the trusted custodian to manage the assets.
This strategy aims to replicate the considerable success seen with Bitcoin ETFs, which currently hold around 69.4 billion dollars in assets under management (AUM). Given the heightened interest in XRP, 21Shares anticipates potential revenue growth as they cater to this growing segment.
However, the outcome of this application hinges on the SEC’s response, which may lean towards caution, especially if the political landscape shifts following upcoming elections.
Unfolding Legal Battle: Ripple vs. SEC ⚖️
The SEC’s decision regarding 21Shares’ XRP ETF request is likely influenced by the ongoing legal proceedings between Ripple and the SEC. This dispute has persisted since December 2020, when the SEC accused Ripple of conducting an unregistered securities offering.
Throughout this protracted conflict, the courts have generally sided with Ripple, with Judge Annalisa Torres asserting in July 2023 that XRP is not classified as a security token and thus isn’t subject to the SEC’s regulatory framework on unregistered securities.
Nevertheless, the SEC has consistently sought to challenge this ruling, attempting to impose fines and damages on Ripple. In August of the previous year, Ripple was levied a 125 million dollar penalty for violating regulations concerning institutional sales.
As the legal tensions continue, both parties are engaged in appeals, leaving any approval of an XRP ETF by 21Shares uncertain until the matter is conclusively resolved.
Institutional Interest in Cryptocurrency ETFs 🌐
Interest among institutional players, including 21Shares, in cryptocurrency ETFs extends beyond XRP. Following the SEC’s approval of 11 spot Bitcoin ETFs in January of this year, demand for regulated crypto investment products has noticeably increased.
In July, several investment options for Ethereum surfaced, although these products have yet to show substantial performance metrics. Additionally, VanEck has applied for federal approval to include Solana as a regulated crypto asset, while Canary Capital is working to facilitate Litecoin trading on U.S. exchanges.
Current trends indicate that 21Shares and other market entrants are keen to introduce leading altcoins, anticipating a potential altseason. For example, Solana has risen by an impressive 287% over the past year, attracting substantial investor interest.
Promising price trajectories of cryptocurrencies like XRP could translate into increased transaction fees for providers in this sector. Expectations for a rebound in the altcoin market by 2025 could reinvigorate investment opportunities that have recently faced challenges due to various macroeconomic and geopolitical factors.
21Shares and Their Accomplishments with Bitcoin ETFs 🏆
21Shares continues to follow the remarkable momentum gained from Bitcoin ETFs introduced earlier this year. Their decision to explore assets such as XRP reflects a desire to extend their success into new markets.
The growth of Bitcoin ETFs has recorded unprecedented figures in the ETF space, amassing over 50 billion dollars in just three months post-launch. Recent weeks indicate a positive trend, with prominent inflows occurring over an extended period.
Such performance could inspire optimism towards receiving approval for an XRP ETF. Currently, 21Shares, alongside Akr Invest, ranks fourth in net assets of Bitcoin ETFs, competing closely with industry heavyweights like Fidelity, Grayscale, and BlackRock.
With a comprehensive suite of investment options, including single-asset cryptocurrencies and diversified indices, the goal now is to secure XRP as another core offering within their products. The anticipation grows for the SEC’s decision, expected in 2025, as the crypto community watches closely.
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