As a seasoned crypto investor with a knack for spotting trends and navigating regulatory complexities, I find myself intrigued by the recent 21Shares XRP ETF filing. The surge of interest in crypto ETFs is undeniable, but the road to approval for an XRP ETF remains uncertain due to the SEC’s ongoing legal battle with Ripple Labs.
Last Friday, investment firm 21Shares submitted a registration document (S-1 form) to the U.S. Securities and Exchange Commission (SEC) for creating an exchange-traded fund (ETF) focused on Ripple‘s digital asset (XRP). If approved, this fund would be managed by 21Shares under the name of 21Shares Core XRP Trust.
In line with previous submissions by companies like Canary Capital and Bitwise over recent months, this proposal aligns with a growing trend towards cryptocurrency Exchange-Traded Funds (ETFs), fueled notably by the success of Bitcoin and Ethereum ETF approvals earlier in the year.
21Shares Files For XRP ETF Amid Strong Demand
The filing indicates a strong demand for alternative crypto investments, particularly as Bitcoin and Ethereum ETFs have gained traction among investors. However, the path to approval for the XRP ETF is fraught with uncertainty.
As a financial analyst, I’ve noticed a heightened focus by the Securities and Exchange Commission (SEC) on the cryptocurrency sector, especially in light of their ongoing legal tussle with Ripple Labs. This dispute carries substantial weight for determining the regulatory classification of XRP.
The Securities and Exchange Commission (SEC) believes that XRP falls under the category of securities, based on the Howey Test – a legal tool for identifying if specific transactions are classified as investment contracts.
This regulatory ambiguity poses considerable challenges for the approval of the three XRP ETF applications by the asset managers currently under review.
Trump And Harris Signal Potential Regulatory Reforms
Despite a positive outlook from certain business heads like Ripple Labs CEO Brad Garlinghouse, who predicts the introduction of an XRP-based ETF in the U.S. as “unavoidable,” it’s yet uncertain how the Securities and Exchange Commission (SEC) will react to these forthcoming proposals.
The upcoming U.S. presidential election will introduce an additional level of intricacy, as both candidates, Donald Trump and Kamala Harris, have hinted at plans to revamp the existing regulatory approach towards cryptocurrencies. This potential shift could bring clearer guidelines and possibly more advantageous circumstances for crypto assets in the future.
Completing these changes might open a path toward approving upcoming XRP ETF proposals, as well as applications for other recently submitted forms like those for Solana and Litecoin.
Currently, when I’m typing this, XRP is being exchanged for approximately $0.52, experiencing a rise of over 2% in value after the revelation of the latest filing.
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2024-11-01 20:11