The 21Shares Spot XRP ETF filing advanced significantly with Amendment No. 3 under Section 8(a), starting a 20-day SEC review period for potential approval. This move, alongside similar updates from Franklin Templeton and Grayscale, boosts prospects for XRP’s institutional adoption, potentially mirroring Bitcoin and Ethereum’s ETF successes and enhancing liquidity.
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21Shares’ Section 8(a) filing accelerates XRP ETF review
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Bloomberg analysts confirm the amendment initiates a 20-day approval window
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XRP price rose over 6% to $2.32 amid heightened investor interest; international XRP ETFs like Rex-Osprey manage over $114 million in assets
Discover the latest on 21Shares’ XRP ETF amendment and its impact on Ripple’s token. Explore approval timelines, competing filings, and market reactions in this comprehensive update. Stay informed on crypto ETF developments today.
What is the significance of 21Shares’ recent XRP ETF amendment?
The 21Shares XRP ETF amendment represents a pivotal step toward bringing XRP into the mainstream spot ETF market. Filed as Amendment No. 3 to Form S-1 under Section 8(a) of the Securities Act of 1933, this update formally activates a 20-day review period by the U.S. Securities and Exchange Commission (SEC), during which the filing could gain automatic approval unless specific objections arise. Bloomberg ETF analyst Eric Balchunas highlighted this development, noting it sets the stage for potential trading authorization soon, much like recent precedents with other cryptocurrencies.
How are other firms advancing their XRP ETF applications?
Several prominent asset managers are actively refining their XRP ETF proposals to align with regulatory expectations and hasten approvals. Franklin Templeton submitted amendments to its 19b-4 filing, simplifying its structure for spot XRP exposure, while Grayscale updated its conversion application from a trust to an ETF format, emphasizing operational efficiency. Canary Capital also joined the effort with a revised S-1 form, focusing on direct XRP holdings.
These coordinated actions underscore growing institutional interest in XRP, Ripple’s native token designed for fast cross-border payments. According to data from ETF analysts, such filings could lead to approvals as early as within weeks, even amid potential government disruptions, as seen with Solana ETFs earlier in the year. Expert Nate Geraci of ETF Prime described this wave of updates as a definitive shift toward broader acceptance of digital assets, potentially dismantling lingering regulatory resistance.
The international landscape further bolsters this momentum. For instance, the Rex-Osprey XRP ETF, which launched in September, has amassed over $114.6 million in assets under management, demonstrating strong demand outside the U.S. Similarly, the Teucrium 2x Long Daily XRP ETF has exceeded $384 million in net assets since its April debut, outperforming other leveraged crypto products in Teucrium’s portfolio. Volatility Shares, ProShares Ultra, and Purpose Investments have also reported steady inflows into their XRP-focused funds, with trading volumes reflecting sustained investor enthusiasm.
Bloomberg’s James Seyffart provided additional insight, stating that the streamlined filings position XRP ETFs for imminent launches, possibly bypassing typical delays. This convergence of efforts not only highlights XRP’s utility in efficient transaction processing but also signals a maturing crypto market ready for diversified investment vehicles.
Frequently Asked Questions
What triggered the recent surge in XRP’s price following the ETF news?
The XRP ETF amendment by 21Shares sparked a more than 6% price increase for XRP, pushing it to $2.32. Investors reacted positively to the formal SEC review initiation, viewing it as a beacon for enhanced liquidity and institutional inflows, akin to the market boosts seen with Bitcoin and Ethereum spot ETFs.
Could XRP ETFs launch during a U.S. government shutdown?
Yes, based on analyst observations, XRP ETFs could proceed to trading even during a government shutdown. Filings like Section 8(a) amendments operate on predefined timelines set by the SEC, allowing approvals to advance independently of broader federal operations, as demonstrated by Solana ETF launches under similar conditions this year.
Key Takeaways
- Accelerated Approval Path: 21Shares’ Section 8(a) filing starts a 20-day SEC clock, potentially fast-tracking the XRP ETF without extended deliberations.
- Institutional Momentum: Franklin Templeton, Grayscale, and Canary Capital’s amendments reflect a collective push, mirroring Solana’s successful ETF rollout and signaling XRP’s readiness for mainstream finance.
- Global Precedent: Overseas XRP ETFs, such as Rex-Osprey with $114.6 million in AUM, demonstrate proven demand and could pave the way for U.S. approvals, urging investors to monitor regulatory updates closely.
Conclusion
The 21Shares XRP ETF amendment, coupled with parallel efforts from major firms like Franklin Templeton and Grayscale, marks a transformative phase for Ripple’s ecosystem and the broader XRP ETF landscape. As institutional adoption gains traction, evidenced by robust international fund performance and expert endorsements from Bloomberg analysts, XRP stands poised for increased liquidity and investor accessibility. Looking ahead, stakeholders should anticipate further regulatory clarity that could integrate XRP alongside established assets like Bitcoin and Ethereum, fostering innovation in digital payments and beyond—stay tuned for evolving opportunities in the crypto space.
