Asset management company 21Shares has filed an application with the United States Securities and Exchange Commission (SEC) to list and trade shares of an XRP exchange-traded fund (ETF). This application makes 21Shares the third firm to apply for a spot XRP ETF, following Canary Capital and Bitwise.

In the document filed on November 1, 21Shares filed Form S-1 to list shares of its Core XRP Trust on the Cboe BZX exchange. However, the trust does not offer direct exposure to XRP, but instead provides investors with an “indirect market access opportunity.” If approval advances, Coinbase Custody Trust Company will be the entity in charge of custody of the investment vehicle's XRP.

This proposal from 21Shares comes after other asset management firms, such as Bitwise, also filed their respective XRP ETF applications with the SEC.

To date, the SEC has approved Bitcoin (BTC) and Ether (ETH) spot ETFs in 2024, but has not responded to XRP ETF (XRP) applications due to the ongoing civil lawsuit with Ripple Labs. At trial, a federal judge ruled that the XRP token is not a security in the context of programmatic sales on exchanges, although the ruling still faces appeals from both sides.

The Implications of the Ripple Labs Judgment on XRP ETFs

Since the SEC approved the Bitcoin ETF in January 2024, more companies have explored investment vehicles linked to other digital assets. For example, companies like VanEck, 21Shares, and Canary Capital have applied to list and trade Solana (SOL) ETFs, and Canary recently proposed a Litecoin (LTC) ETF in October.

The SEC, however, maintains the power to delay its decision on ETF applications or open public comment periods. With the upcoming election, there is political speculation about the future of the SEC leadership; Experts have suggested that figures like Kamala Harris or Donald Trump could replace the current president, Gary Gensler, if elected.