21SHARES FILES FORM S-1 WITH SEC FOR SPOT XRP ETF

Last updated: June 19, 2025, 19:37 | Written by: Meltem Demirors

The world of cryptocurrency investment is constantly evolving, and the latest development has the potential to significantly impact how investors gain exposure to XRP.Asset manager 21Shares, a well-known player in the digital asset space and co-issuer of the ARK 21Shares Bitcoin ETF, has officially filed a Form S-1 with the United States Securities and Exchange Commission (SEC) for a spot XRP exchange-traded fund (ETF). On NovemShares officially submitted a Form S-1 with the SEC for its Core XRP Trust, an investment vehicle intended to provide indirect exposure to XRP for investors. While the ETF won't directly hold XRP tokens, it allows investors to engage with the XRP market through a regulated and accessible platform.This move signals a growing interest in expanding the availability of crypto investment vehicles, providing traditional investors with a more regulated and accessible way to participate in the XRP market.The proposed ETF, dubbed the 21Shares Core XRP Trust, aims to track the performance of XRP, allowing investors to gain exposure to the cryptocurrency's price movements without directly holding the digital asset. 21Shares filed with the SEC to launch the first-ever Spot Dogecoin ETF in the US. The ETF aims to track the real-time price of Dogecoin (DOGE) with physical backing. On the same day, 21Shares launched a similar Dogecoin product on Switzerland s SIX Exchange. Digital asset manager 21Shares hasThe filing marks a significant step in the ongoing effort to bring regulated crypto products to the U.S. market, joining similar applications from other firms like Bitwise, Canary Capital and WisdomTree.But what does this mean for the future of XRP investment, and what are the chances of the SEC approving this application? WisdomTree, managing a diverse portfolio of assets valued at $113 billion, has officially filed a Form S-1 registration statement with the SEC for its WisdomTree XRP Fund a move that marks its entry into the growing field of asset managers seeking to launch XRP-based investment products. AccordingLet’s delve into the details of the filing, explore the potential implications, and address some key questions surrounding this exciting development.

Understanding the 21Shares Core XRP Trust

The core of 21Shares' proposal lies in the creation of the 21Shares Core XRP Trust.This trust is designed to hold XRP and issue shares that track its value.The fundamental concept is to provide investors with a convenient and regulated way to invest in XRP without the complexities of directly purchasing, storing, and managing the digital asset.

Key Features of the Proposed ETF

Indirect Exposure: The ETF won't directly hold XRP tokens in a way that requires direct interaction with the XRP ledger by the investor.Instead, it offers indirect exposure to the XRP market through a regulated and accessible platform.
Listing on Cboe BZX Exchange: 21Shares intends to list the shares of the Core XRP Trust on the Cboe BZX Exchange.This exchange is a well-established platform known for listing innovative investment products, offering greater visibility and accessibility to a broader range of investors.
Coinbase Custody Trust Company: 21Shares has selected Coinbase Custody Trust Company as the custodian for the XRP holdings of the Trust. Asset management company 21Shares has joined the list of firms that have filed applications with the US Securities and Exchange Commission (SEC) for a spot XRP exchange-traded fund (ETF). On Nov. 1, 21Shares submitted an S-1 form to register its Core XRP Trust shares for listing on the Cboe BZX Exchange.Coinbase is a reputable and established player in the cryptocurrency space, known for its robust security measures and experience in handling digital assets.
Tracking XRP Price: The ETF's primary objective is to generate returns for investors by accurately tracking the price of XRP. The WisdomTree XRP Fund was submitted to the SEC in December, while 21Shares first filed for its XRP ETF, the 21Shares Core XRP Trust, in November. JP Morgan projected that within the first 12 months of their launch, spot XRP ETFs will attract between $4 billion and $8 billion in net new assets.The asset manager will not actively trade XRP in an attempt to outperform the market.Instead, they will focus on maintaining the ETF's holdings in a manner that reflects the underlying cryptocurrency's performance.

This passive management style aims to provide investors with a straightforward and transparent way to participate in the XRP market, aligning their returns directly with the cryptocurrency's price movements.

Why the Rush for Spot XRP ETFs?

The recent surge in filings for spot XRP ETFs, including those from Bitwise, Canary Capital, WisdomTree and 21Shares, reflects a growing demand for regulated and accessible cryptocurrency investment products.Several factors contribute to this increasing interest:

Maturity of the Crypto Market: The cryptocurrency market has matured significantly in recent years, attracting greater institutional interest and broader mainstream adoption.
Demand for Regulated Products: Many traditional investors are hesitant to directly engage with cryptocurrencies due to regulatory uncertainty and security concerns.ETFs offer a more regulated and familiar investment vehicle, appealing to a wider range of investors.
Exposure to XRP Price Movements: Investors want to capitalize on the potential price appreciation of XRP without the complexities of direct ownership.Spot ETFs provide a simple way to gain exposure to the cryptocurrency's price fluctuations.
Recent Positive Developments: Ripple's partial legal victory against the SEC has undoubtedly fueled optimism and renewed interest in XRP.

The success of spot Bitcoin ETFs in other regions, particularly in Europe, has also spurred interest in similar products in the U.S. market.Issuers like 21Shares are positioning themselves to capitalize on this growing demand and become leaders in the emerging market for crypto ETFs.

The SEC's Stance on Crypto ETFs: A Historical Perspective

The SEC has historically taken a cautious approach to approving cryptocurrency ETFs, particularly those based on spot assets. Canary Capital followed in the steps of Bitwise, filing an S-1 for the Canary XRP ETF with the SEC on Oct. 9. 21Shares, a co-issuer of ARK 21Shares Bitcoin ETF with Cathie Wood s ARK InvestThe primary concerns raised by the SEC revolve around investor protection, market manipulation, and the lack of robust surveillance mechanisms in the cryptocurrency market.Understanding the SEC's past decisions and concerns is crucial to assess the potential chances of approval for the 21Shares Core XRP Trust.

Previous Rejections and Concerns

The SEC has rejected numerous applications for spot Bitcoin ETFs over the years, citing concerns such as:

Market Manipulation: The SEC has expressed concerns about the potential for market manipulation in the underlying cryptocurrency markets, which could negatively impact ETF investors.
Lack of Surveillance: The SEC has emphasized the need for comprehensive surveillance mechanisms to detect and prevent fraudulent or manipulative trading activities.
Investor Protection: The SEC has a mandate to protect investors and ensure that investment products are not misleading or overly risky.

Recent Developments and Shifting Landscape

Despite past rejections, there are signs that the SEC's stance on cryptocurrency ETFs may be evolving. The Nasdaq stock exchange is seeking approval to list and trade XRP and Litecoin exchange-traded funds from CoinShares, adding to a wave of new crypto ETF applications. A Friday filing with theThe approval of Bitcoin futures ETFs in 2021 signaled a willingness to consider crypto-related investment products. WisdomTree filed with the US Securities and ExchangeCommission (SEC) to launch a spot XRP exchange-traded fund (ETF) today (Monday).This makes WisdomTree the fourth company in the US to submit a Form S-1 for aspot XRP ETF. The new fund, called the WisdomTree XRP Fund, aims to giveinvestors exposureFurthermore, the increasing maturity of the cryptocurrency market and the development of more sophisticated surveillance tools may address some of the SEC's previous concerns.

However, it's important to remember that the SEC has a mandate to protect investors and will carefully scrutinize all applications for cryptocurrency ETFs.The outcome for spot XRP ETFs remains uncertain, and the SEC's decision will likely hinge on its assessment of the risks and benefits for investors.

Analyzing the 21Shares S-1 Filing: Key Takeaways

The Form S-1 filed by 21Shares provides crucial insights into the structure, operations, and risk factors associated with the proposed Core XRP Trust.A thorough analysis of the filing is essential for investors to understand the potential risks and rewards of investing in this ETF.

Fund Structure and Management

Passive Management: The ETF will be passively managed, meaning that the fund manager will not actively trade XRP to generate profits. On J, the SEC filed a complaint against the Relevant Coinbase Entities in federal district court in the Southern District of New York, alleging, inter alia: (i) that Coinbase Inc. has violated the Exchange Act by failing to register with the SEC as a national securities exchange, broker-dealer, and clearing agency, in connection withThe goal is simply to track the price of XRP as closely as possible.
Custodial Arrangements: Coinbase Custody Trust Company will act as the custodian for the XRP holdings.This arrangement aims to provide a secure and reliable storage solution for the cryptocurrency.
Listing Venue: The shares of the ETF will be listed on the Cboe BZX Exchange. 21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the currentThis exchange provides a regulated and liquid trading environment for investors.

Potential Risks and Challenges

The S-1 filing also outlines the potential risks and challenges associated with investing in the 21Shares Core XRP Trust.These risks include:

Regulatory Uncertainty: The regulatory landscape for cryptocurrencies is constantly evolving, and changes in regulations could negatively impact the ETF's value.
Market Volatility: The price of XRP is highly volatile, and investors could experience significant losses.
Security Risks: Cryptocurrency holdings are susceptible to hacking and theft, which could result in the loss of assets.
Competition: The market for cryptocurrency ETFs is becoming increasingly competitive, and the 21Shares Core XRP Trust may face competition from other similar products.

Investors should carefully review the S-1 filing and consider their own risk tolerance before investing in the 21Shares Core XRP Trust.

Impact on the XRP Market

The potential approval of a spot XRP ETF could have a significant impact on the XRP market. Asset manager 21Shares has filed for approval of a spot XRP BINANCE:XRPUSD exchange-traded fund (ETF) with the United States Securities and Exchange Commission.In a Nov. 1 SEC filing, 21Shares filed a Form S-1 for its Core XRP Trust shares to be listed and traded on the Cboe BZX Exchange.The introduction of a regulated and accessible investment vehicle could attract a new wave of institutional and retail investors, potentially driving up demand for XRP and increasing its price.JP Morgan has projected that within the first 12 months of their launch, spot XRP ETFs could attract between $4 billion and $8 billion in net new assets.

Increased Liquidity and Trading Volume

An XRP ETF would likely increase the liquidity of the XRP market, making it easier for investors to buy and sell the cryptocurrency. Spot Bitcoin ETF issuer WisdomTree has filed a Form S-1 registration statement with the Securities and Exchange Commission (SEC) to launch a spot XRP exchange-traded fund (ETF). WisdomTree joins Bitwise, 21Shares, and Canary Capital in seeking SEC approval for spot XRP ETFs.Increased liquidity could also reduce price volatility, making XRP a more attractive investment for some investors.

Greater Institutional Adoption

The approval of an XRP ETF could pave the way for greater institutional adoption of the cryptocurrency. On Friday, crypto asset manager 21Shares filed an S-1 registration form for a spot XRP ETF with the US Securities and Exchange Commission (SEC) to establish the 21Shares Core XRP Trust.Many institutional investors are restricted from investing directly in cryptocurrencies, but they may be permitted to invest in ETFs that track the price of those assets.

Potential for Price Appreciation

Increased demand and liquidity could lead to price appreciation for XRP. Cryptocurrency exchange-traded fund (ETF) issuer 21Shares wants to give American investors exposure to XRP. The Swiss firm on Friday filed an S-1 form with the Securities and Exchange Commission (SEC) to launch an XRP ETF. If approved, the 21Shares Core XRP Trust would track the price of the seventhHowever, it's important to note that the price of XRP is subject to market forces and could decline even if an ETF is approved.

XRP vs Bitcoin ETFs: A Comparative Analysis

While the cryptocurrency ETF landscape is still developing, it's helpful to compare the proposed XRP ETFs with existing or proposed Bitcoin ETFs to understand the potential differences and similarities.

Market Maturity and Adoption

Bitcoin, as the first and most well-known cryptocurrency, has a more mature market and greater adoption than XRP.Bitcoin ETFs have already been approved in some jurisdictions, and there is significant institutional interest in spot Bitcoin ETFs in the U.S. XRP, on the other hand, is still facing regulatory uncertainty and has a smaller market capitalization.

Regulatory Landscape

The regulatory landscape for XRP is more complex than that of Bitcoin.Ripple, the company behind XRP, has been embroiled in a legal battle with the SEC, which has created uncertainty about the cryptocurrency's legal status. On NovemShares filed an S-1 registration form with the Securities and Exchanges Commission for a spot XRP ETF. If the regulator approves the filing, the company will establish itsThis regulatory uncertainty could make it more difficult for spot XRP ETFs to gain approval.

Investment Strategies

Both Bitcoin and XRP ETFs aim to track the price of the underlying cryptocurrency. 21Shares submitted a Form S-1 filing to the SEC on November 1, seeking approval to list its Core XRP Trust shares on the Cboe BZX Exchange. The filing aims to allow investors to access the XRP market indirectly. Coinbase Custody Trust Company will be the custodian for the XRP holdings.However, there may be differences in the custodial arrangements, trading strategies, and fee structures of different ETFs.Investors should carefully compare the features of different ETFs before making an investment decision.

Practical Steps for Investors

If you are interested in potentially investing in a spot XRP ETF, here are some practical steps you can take:

Do Your Research: Thoroughly research the 21Shares Core XRP Trust and other potential XRP ETFs. Previous spot XRP ETF filings came from Bitwise, Canary Capital and 21Shares. In filing the S-1 for the spot XRP fund, WisdomTree joins three other ETF issuers, including crypto asset managerRead the S-1 filings, understand the risks and benefits, and compare the features of different ETFs.
Assess Your Risk Tolerance: Cryptocurrency investments are highly volatile. Bitwise files first Form S-1 for XRP ETF with US SEC . Subject to approval from the SEC, the Bitwise spot XRP ETF will provide exposure to the value of XRP held directly by the trust.Assess your risk tolerance and determine whether you are comfortable with the potential for significant losses.
Consult a Financial Advisor: Seek advice from a qualified financial advisor who can help you assess your investment goals and risk tolerance and recommend appropriate investment strategies.
Stay Informed: Stay up-to-date on the latest developments in the cryptocurrency market and the regulatory landscape.The SEC's decision on spot XRP ETFs could have a significant impact on the market.
Diversify Your Portfolio: Don't put all your eggs in one basket.Diversify your investment portfolio across different asset classes to reduce your overall risk.

Frequently Asked Questions (FAQs)

What is a spot XRP ETF?

A spot XRP ETF is an exchange-traded fund that holds actual XRP.Investors can buy and sell shares of the ETF on a stock exchange, gaining exposure to the price movements of XRP without directly owning the cryptocurrency.

How does a spot XRP ETF work?

The ETF provider purchases and holds XRP. The US SEC has extended the timeline for when it will rule on Franklin Templeton s spot XRP ETF, with the new decision date set for J, per a newly issued notice. The securities regulator said they need additional time to evaluate the proposed rule change filed by Cboe BZX Exchange to list and trade shares of the ETF, also known asThey then issue shares of the ETF that represent a fraction of the total XRP held by the fund. Asset manager 21Shares has filed for approval of a spot XRP ( XRP ) exchange-traded fund (ETF) with the United States Securities and Exchange Commission. In a Nov. 1 SEC filing, 21Shares filed a Form S-1 for its Core XRP Trust shares to be listed and traded on the Cboe BZX Exchange.The price of the ETF shares fluctuates based on the price of XRP.

What are the benefits of investing in a spot XRP ETF?

Accessibility: ETFs are easily accessible through traditional brokerage accounts.
Regulation: ETFs are subject to regulatory oversight, providing a degree of investor protection.
Diversification: ETFs can provide diversification within the cryptocurrency market.
Liquidity: ETF shares are typically highly liquid, making it easy to buy and sell them.

What are the risks of investing in a spot XRP ETF?

Volatility: The price of XRP is highly volatile, and ETF shares can fluctuate significantly.
Security Risks: The XRP held by the ETF is subject to security risks, such as hacking and theft.
Regulatory Risks: Changes in regulations could negatively impact the value of the ETF.
Tracking Error: The ETF may not perfectly track the price of XRP due to fees and other expenses.

What is the likelihood of the SEC approving a spot XRP ETF?

The likelihood of SEC approval is uncertain. 21Shares Files For XRP ETF Amid Rising Demand . Today, 21Shares, a leading crypto asset manager, submitted an S-1 registration form to the US Securities and Exchange Commission (SEC) for a spot XRP ETF, aiming to establish the 21Shares Core XRP Trust.The SEC has historically been cautious about approving cryptocurrency ETFs, but the increasing maturity of the market and the growing demand for regulated crypto products may increase the chances of approval.However, the ongoing legal issues surrounding XRP could still pose a challenge.

Conclusion

The filing by 21Shares for a spot XRP ETF is a significant development in the cryptocurrency investment landscape.It signals a growing demand for regulated and accessible ways to invest in digital assets.While the SEC's decision remains uncertain, this move reflects the evolving maturity of the crypto market and the increasing interest from traditional investors. 21Shares submitted a request for authorization to establish an exchange-traded fund that deals in spot XRP (ETF) to the US Securities and Exchange Commission. The Ohio-based asset management firm submitted a Form S-1 to the SEC to issue and sell shares of the Core XRP Trust on the Cboe BZX Exchange.Whether the SEC will approve the 21Shares Core XRP Trust remains to be seen, but investors should closely monitor the situation and conduct thorough research before making any investment decisions.The introduction of an XRP ETF could potentially revolutionize how investors interact with this digital asset, opening doors for broader market participation and solidifying XRP's position within the financial ecosystem.Keep an eye on further announcements from the SEC. On NovemShares filed an S-1 registration form with the Securities and Exchanges Commission for a spot XRP ETF. If the regulator approves the filing, the company will establish its 21Shares Core XRP Trust, listed on the Cboe BZX Exchange, and Coinbase Custody Trust Company, its custodian.Stay informed, and good luck!