Assetmanagementcompany21ShareshasjoinedthelistoffirmsthathavefiledapplicationswiththeUSSecuritiesandExchangeCommission(SEC)foraspotXRPexchange-tradedfund(ETF).
OnNov.1,21SharessubmittedanS-1formtoregisteritsCoreXRPTrustsharesforlistingontheCboeBZXExchange.Coinbase,thelargestcryptoexchangeintheUS,wouldserveasthefund’scustodian.
Earlierthisyear,21SharessuccessfullylaunchedspotBitcoinandEthereumETFsfollowingSECapproval,includingitsBitcoinETF(ARKB),developedinpartnershipwithArkInvest.ARKBhassinceattracted$2.6billioninnetinflows,whileitsEthereumETF(CETH)hasgained$21.8million.
CoreXRPTrust
TheCoreXRPTrustoperatesasapassiveinvestmentvehicle.ItsgoalistotrackthepriceofXRPwithoutattemptingtogenerateadditionalreturnsbybuyingorsellingXRPbasedonmarkettrends.TheTrustwillnotuseleverage,derivatives,orsimilarstrategiesforitsassets.
Instead,itaimstomirrortheperformanceoftheCMECFRipple-DollarReferenceRateafterfactoringinexpensesandotherliabilities.CFBenchmarksLtd.calculatesthisbenchmark.
21SharesalsoclarifiedthattheTrustdoesnotofferdirectexposuretoXRP.RatherthanadirectinvestmentinXRP,theTrustallowsinvestorsindirectaccesstoXRP’smarketthroughatraditionalbrokerageaccount,reducingthebarriersandriskstypicallyassociatedwithholdingortransferringXRPdirectlyorpurchasingitfromanXRPspotmarket.
XRPETF
Meanwhile,thechancesofanXRPETFapprovalareslim,consideringtheSEChasyettoapproveanyspotXRPETFs.
ThisuncertaintystemsfromtheSEC’songoinglegalbattlewithRippleLabs,thecompanybehindXRP.Since2020,thefinancialregulatorallegedthatRippleraised$1.3billionthroughunregisteredXRPsales.
However,a2023judgmentruledthatXRPwasnotasecuritywhensoldprogrammaticallyonexchanges,butthecaseremainsunderappeal.
Despitethelegalhurdles,RippleCEOBradGarlinghouserecentlyexpressedoptimismthattheSECwilleventuallyapproveanXRPETF,givenitsrecentapprovalsforBitcoinandEthereumETFs.
Otherassetmanagers,includingCanaryCapitalandBitwise,arealsopursuingapprovalfortheirspotXRPETFs,signalingstronginstitutionalinterestinexpandingXRPinvestmentoptionsdespiteregulatoryuncertainty.
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