21Shares has filed an application with the U.S. Securities and Exchange Commission (SEC) for a spot XRP Exchange Traded Fund (ETF). This filing initiates a 20-day review period, during which the ETF could receive automatic approval if the SEC does not issue a formal response.
Key Developments and Market Impact
- •21Shares has applied to the U.S. SEC for a spot XRP ETF, with a potential for automatic approval if the SEC remains inactive within 20 days.
- •The XRP price experienced a surge of approximately 5% immediately following the announcement of the filing.
- •This move by 21Shares indicates growing institutional interest in cryptocurrency investment products and could significantly influence the XRP market.
21Shares' Strategic Move into the U.S. Market
21Shares, a prominent provider of cryptocurrency Exchange Traded Products (ETPs), is seeking to introduce a spot XRP ETF to the U.S. market. This strategic initiative has the potential to bring about considerable changes in the cryptocurrency ETF sector.
The application is being spearheaded by Hany Rashwan, the CEO of 21Shares. Industry expert Eric Balchunas has confirmed the filing, noting its potential implications.
XRP Price Reacts Positively to ETF Filing
The price of XRP saw an increase of approximately 5% shortly after the news of 21Shares' filing broke. This immediate market reaction underscores the potential impact of such institutional moves on cryptocurrency valuations.
The growing involvement of established financial entities, including Grayscale and Franklin Templeton, in the cryptocurrency ETF space suggests a developing momentum within the sector. According to Scott Melker, there is a possibility for the ETF to become effective around November 27 if the SEC takes no action.
The potential for regulatory approval could foster greater institutional adoption of XRP. This could also influence Bitcoin (BTC) and Ethereum (ETH) due to anticipated capital shifts within the U.S. financial markets.
Historical Precedent: ETF Filings and Asset Prices
Past filings for spot ETFs, such as those for Bitcoin, have often preceded significant surges in asset prices. Scott Melker has highlighted the potential for an automatic activation by November 27, contingent on the SEC's non-intervention.
Historical patterns indicate that regulatory approvals in the ETF space frequently lead to increased trading volumes and substantial institutional investment inflows. This current filing for an XRP ETF may replicate the transformative effects observed with Bitcoin ETFs.