21Shares,Bitwise,andCanaryCapitalfileforXRPETFs,signalingstronginstitutionalinterest.
GrayscalerelaunchesXRPTrustandseekstoconvertmulti-assetfundstoETF.
Ripple’sQ3report:CMEsetsXRPreferenceprice,BitnominalplansXRPfutureslaunch.
NewtrendsemerginginthecryptocurrencymarketspointtoasurgeofinstitutionalXRPusers.RippleCEOBradGarlinghouserecentlyhighlightedthistrend,asseveralbigassetmanagers,suchas21Shares,Bitwise,andCanaryCapital,haveappliedforXRPETFs.Grayscaleisalsoworkingtoconvertitsmulti-assetfundcontainingXRPtoanETF.
Themessagefromthemarketisclear–institutionalinterestinXRPproductsisstrongerthanever.@BitwiseInvest,@CanaryFunds,and@21Shares(justthismorning!)filedS-1sforXRPETFswhile@GrayscalelaunchedanXRPTrustandfiledtoconvertitsmulti-assetfund,…https://t.co/d5Icksw4Sj
—BradGarlinghouse(@bgarlinghouse)November1,2024
InstitutionalDemandDrivesXRPETFFilings
21Sharesisanoutstandingassetmanagerthathasjoinedthelistofcompaniesapplyingforspot-basedXRPETF.ThecompanysubmittedanS-1registrationformtotheSECfortheproposedfund,21SharesCoreXRPTrust,whichwillallowinvestorstoholdcryptocurrencyinXRPwithoutrequiringthemtoholdtheassetdirectly.
ThisETFwouldtrackthespotpriceofXRPand,ifapproved,wouldbelistedintheCboeBZXexchangewithCoinbaseCustodyTrustCompanyasthefundadministrator.
ThisfilingcloselyfollowssimilarapplicationsbyCanaryCapitalandBitwise,bothofwhichsubmittedS-1filingsforspot-basedXRPETFs.Moreover,GrayscaleInvestmentshasreintroducedXRPTrustandsoughtanETFofchangeforitsmultiple-assetinvestmentproductcontainingXRP.ThesefilingsindicateapositivechangeininstitutionalviewregardingXRP,whichfirmsnowseefittoincludeinmainstreaminvestmentproducts.
LegalClarityBoostsInstitutionalConfidenceinXRP
Garlinghouse’sstatementsoninstitutionalinterestalsoreflectRipple’songoinglegalbattlewiththeSEC,whichruledinJulythatXRPisnotinherentlyasecurity.
ThisdecisionhasallowedU.S.-basedexchangestorelistXRP,offeringgreaterregulatoryclarityforglobalplatforms.GarlinghousenotedthattheSEC’sappealagainsttherulingdidnotdeterinstitutionalinterestinXRPproducts.Onthecontrary,demandhascontinuedtogrow,underscoringtheresilienceofinstitutionalinterestdespiteregulatoryhurdles.
Thecourt’sdecisionhasboostedregulatorytransparency,enablinginstitutionalinvestorstolaunchstructuredinvestmentproductslikeETFs,leadingcompanieslike21Shares,Bitwise,andGrayscaletoproceedwiththeirplansforXRP-basedfunds.
InstitutionalProductsThriveAmidRegulatoryScrutiny
InlightoftheSEC’slegalactions,Garlinghouseaddressedtheagency’sstance,suggestingitscontinuedresistancetocryptoinnovationcouldharmitscredibility.DespitetheSEC’sappealagainstRipple,whichchallengesaspectsofXRP’slegalstatus,thepersistenceofinstitutionalfilingsforXRPETFsshowsthatcompaniesremaincommittedtoadvancingtheseofferings.
RecentreportsindicatethatatleastthreeofthefourXRP-focusedfilingsweremadefollowingtheSEC’sappealnotice,furtherunderliningthestronginterestamonginstitutionalplayers.
Ripple’sthird-quarterreporthighlightedadditionalindustrydevelopments,suchastheCMEestablishinganXRPreferencepriceandBitnominal’splanstolaunchanXRPfuturesproduct.
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