The anticipation surrounding the potential approval of a spot XRP Exchange-Traded Fund (ETF) is building, as asset manager 21Shares has recently filed an amended prospectus, moving closer to receiving the green light from the Securities and Exchange Commission (SEC) under Section 8(a). This filing has triggered an automatic effectiveness countdown, which is significant for the timeline of XRP ETFs.
Bloomberg ETF analyst Eric Balchunas noted this milestone in a tweet, stating, “21Shares just dropped an 8(a) for their spot XRP ETF. 20-day clock in effect.” The 20-day countdown is a critical period during which the SEC has the opportunity to review the filing. Under U.S. securities law, these amendments to S-1 registration statements become effective automatically after 20 days unless the SEC intervenes by issuing a stay or requesting further changes.
This development follows similar actions from other firms interested in launching XRP ETFs. Canary Capital Group, for instance, has also filed for an XRP ETF, and like 21Shares, it has entered its own 20-day window for review. In a recent announcement, Canary Capital hinted at the impending launch, stating, “Get ready: Canary XRP ETF (XRPC) is coming soon.” Notably, the firm had previously launched the first spot ETFs for Litecoin (LTC) and Hedera (HBAR) in the U.S., which boosts the likelihood of successfully launching an XRP ETF.
Should the XRP ETF be approved, it is set to trade on Nasdaq under the ticker XRPC. It is expected that the fund will hold XRP in custody managed by Gemini Trust Company and BitGo Trust Company, utilizing the CoinDesk XRP CCIXber 60m New York Rate as its pricing benchmark.
The growing enthusiasm for XRP ETFs coincides with a significant week for Ripple Labs. The company has announced new collaborations with major financial institutions such as Mastercard and WebBank for its RLUSD settlement, while also reaching a milestone with its XRP Ledger, which has successfully surpassed 100 million ledgers. Additionally, Ripple’s stablecoin, RLUSD, has recently crossed the $1 billion mark.
For the XRP community, these developments are keenly watched as they may pave the way for increased institutional demand for the cryptocurrency. The potential approval of multiple spot XRP ETFs could signal a broader acceptance of cryptocurrencies within traditional financial markets.
