- 21Shares joins Bitwise and Canary Capital in filing for an XRP ETF in the United States.
- Ripple’s battle with SEC and weak Ethereum ETF performance raise doubts about XRP ETF success.
Crypto investment platform 21Shares has joined a growing list of contenders hoping to get approval for an XRP ETF in the US.
The 21Shares Core XRP Trust, filed for listing on the Cboe BZX Exchange, would track the price of XRP.
Similar to other major crypto ETF providers, such as BlackRock and ARK Invest, 21Shares has selected Coinbase as the custodian for its XRP Trust.
Ripple Labs CEO Brad Garlinghouse asserted that XRP and other crypto ETFs are “inevitable,” following the SEC greenlighting Bitcoin and Ethereum ETFs earlier in the year.
Bitwise made the first XRP ETF filing with the SEC in early October, with Canary Capital following shortly after.
XRP ETF outlook
Bloomberg Intelligence analyst Eric Balchunas sees the wave of XRP ETF filings as a bet on Trump winning the upcoming election.
He suggested that if Trump secures a victory and replaces crypto-sceptical SEC Chair Gary Gensler, the chances of XRP ETF approval would increase significantly.
On the other hand, Balchunas said that if Vice President Kamala Harris secures the presidency, any hope for new crypto ETFs might “expire worthless,” as Gensler would likely retain his role.
Ripple is still licking its wounds from a $125 million fine following a multi-year suit with the Gensler-led SEC, which accused the company of selling XRP as an unregistered security.
Despite the conclusion of the case in August, the XRP price is still struggling to see much upside.
It closed the day yesterday just above $0.51, hovering near the bottom of its three-month price range.
The success of Bitcoin ETFs, which have amassed over $24 billion in cumulative flows, initially fuelled optimism for other crypto ETFs.
However, Ethereum ETFs, approved in July, have seen the opposite trend, with outflows approaching $480 million—raising questions about whether there’s enough demand to make XRP ETFs successful.
Crypto market movers
- Bitcoin is up 0.3% over the past 24 hours to $69,620.
- Ethereum is down 0.2% to trade at $2,500.
What we’re reading
- UBS joins BlackRock and Franklin Templeton with tokenised investment fund — DL News
- Immutable Was Issued a Wells Notice Just Before the Election. Does the SEC Have Time to Follow Through? — Unchained
- US government seeks return of $13 million in political donations from former FTX executives — The Block
- Memecoin traders are getting burned by a new kind of scam token. Here’s how it works — DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
