The fund would be called 21Shares Core XRP Trust, and will not use leverage or derivatives.
Canary Capital and Bitwise also asked the SEC for permission to launch their XRP ETF.
This Friday, 21Shares formally filed to issue and trade its own exchange-traded fund (ETF) based on the price of the XRP cryptocurrency. The fund, to be called 21Shares Core XRP Trust, will follow a passive investment strategy, without using leverage or derivatives.
This application It marks the third time that a company has attempted to launch an XRP ETF, following Canary Capital and Bitwise, who had already requested permission from the SEC for their own products, as reported by CriptoNoticias.
21Shares, which also issues a bitcoin (BTC) ETF with investment firm ARK Invest, specified that its fund “is a passive investment vehicle that does not seek to generate returns beyond tracking the price of XRP.” This implies that No speculative purchase or sale operations will be carried out. of XRP, neither at times of high nor low prices, with the expectation of future price increases.
“Except in cases of liquidation or extraordinary circumstances, the ETF does not plan to buy or sell XRP outside of the transactions necessary for the creation and redemption of shares,” the company says in its documentation.
According to the application, the 21Shares Core XRP Trust will issue beneficial interest common shares that will be listed on the Chicago Stock Exchange. Your goal is to track the performance of XRP, as measured by the CME CF Ripple Index.
The filing also details that the ETF will custody its custody and execution of operations for digital assets.”
Furthermore, 21Shares has made it clear in its document that XRP is not a security, intervening in the long legal dispute on this issue.
“Ownership of XRP does not entitle its holders to any share of a company’s profits or any stream of income payments. XRP is a digital asset and its ownership is reflected in a distributed ledger. Furthermore, XRP is not a security and therefore is not subject to the protections of the US federal securities laws.”
21 Shares
21Shares’ XRP ETF filing joins those of Canary Capital and Bitwise, marking growing interest in cryptocurrency-based investment products that can be marketed in regulated markets. This move reflects the maturation of the cryptoasset market and the growing acceptance of digital assets like XRP in the traditional financial space.
The SEC has not yet issued a decision on any of these requests, which keeps both companies and investors interested in these new instruments waiting. The approval of an XRP ETF could open the door to greater integration of cryptocurrencies into traditional investment portfoliospotentially increasing the liquidity and accessibility of XRP for retail and wholesale investors.
This article was created using artificial intelligence and edited by a human Editor.
