XRP ETFs: A New Frontier for Crypto Investment in the U.S.

In a recent move, 21Shares has announced its intention to add XRP offerings to its range of products. The Swiss-owned ETF issuer submitted legal documents to the United States Securities and Exchange Commission for a license to operate XRF ETF. If the S-1 form submitted by 21Shares is approved by the SEC, the product, will follow the price of Ripple’s XRP token on the Shares Market. A statement released by 21Shares indicated a committed interest toward expanding the access of investors in the United States to crypto assets while encouraging innovation.

The unique product brings together two thriving institutions in the fintech and crypto worlds. The founders of the fintech firm Ripple are responsible for the management of the XRP ecosystem. 21Shares, on the other hand, is an issuer of ETFs with current operations tied to spot BTC and Ethereum, thanks to approvals from the Securities and Exchange Commission in the early months of 2024. Now, the ETF-issuing company is seeking approval to add XRP ETF to its offerings. 

21Shares are not the only asset managers seeking to issue an XRP ETF. Bitwose is also in the race to track the value of XRP in the share market. Greyscale asset management firm had also commenced operation for an XRP Trust recently. This was after the company turned its closed-end BTC and Ethereum holdings into exchange-traded funds. 

While 21Shares awaits approval from the SEC, the national securities and exchange regulatory body is currently embroiled in several high-profile legal battles. One notable case involves Ripple, the company behind the XRP token, in which the SEC filed a $1.3 billion lawsuit against Ripple, alleging that it had issued unregistered securities. However, a court ruling reduced much of this penalty, finding that XRP tokens sold to retail investors did not qualify as securities.

The court ruled that the $728 million worth of XRP sold in institutional contracts could not be classified as unregistered securities. Despite this decision, the legal conflict between Ripple and the SEC remains ongoing, with the SEC recently filing an appeal in an attempt to revisit aspects of the original ruling.