The clock is ticking for crypto enthusiasts as the possibility of a spot XRP ETF in the U.S. moves closer to reality. Asset management firm 21Shares has amended its prospectus for the proposed spot XRP ETF, triggering a 20-day countdown for regulatory review by the SEC. According to Bloomberg analyst Eric Balchunas, this marks a crucial moment in the journey toward ETF approval, a long-anticipated development for XRP.
21Shares has become a significant player in the ETF market, and their filing has prompted a fresh wave of excitement among investors. With U.S. securities law stipulating that the filing automatically comes into effect after 20 days unless the SEC intervenes, all eyes are on the upcoming weeks. During this time, the SEC may either approve the filing, request modifications, or delay it.
Adding to the buzz, another firm, Canary Capital Group, has also initiated its 20-day countdown for a similar XRP ETF. Their filing, which includes a “no delaying amendment” clause, mirrors the timeline of 21Shares, suggesting a synchronized momentum in the competition for ETF approval.
Canary Capital recently hinted at their own XRP ETF, projected to trade under the ticker symbol XRPC on the Nasdaq. The firm’s successful launch of spot ETFs for other cryptocurrencies such as Litecoin and Hedera has generated optimism regarding their XRP ETF ambitions. If approved, the ETF would manage XRP assets in custody through partnerships with reputable firms like Gemini Trust Company and BitGo Trust Company.
As these filings progress, Ripple, the company behind XRP, continues to solidify its standing in the financial sector. Recently, Rippl has formed partnerships with industry giants Mastercard and WebBank for the RLUSD stablecoin initiative. This advancement comes as the XRP Ledger hits a noteworthy milestone of 100 million ledgers, underscoring XRP’s growing importance as a digital asset.
Ripple’s RLUSD stablecoin has also hit the $1 billion mark in transactions, further reinforcing demand for XRP and fostering institutional interest within the crypto community. As both firms await SEC responses, the implications of potential ETF approval remain a hot topic among investors keen to see XRP become more mainstream.
Interest in XRP ETFs is intensifying alongside institutional engagement in cryptocurrency. The arrival of a spot XRP ETF would provide a streamlined investment avenue for those hesitant to hold digital assets directly, potentially attracting a wave of institutional capital that could enhance liquidity and market dynamics.
In an evolving regulatory landscape, the potential approval of a spot XRP ETF could not only represent a milestone for Ripple but also pave the way for broader acceptance of cryptocurrency-based financial products in traditional markets. With multiple players, like 21Shares and Canary Capital Group, pushing forward, the crypto community is on high alert for updates from the SEC in the coming weeks.
