The price outlook of Ripple-associated XRP saw a boost as soon as the news of 21Shares’s XRP ETF filing became public. ETF Store President Nate Geraci took to X to announce the recent ETF development. The investment asset management firm is seeking approval from the US SEC to list the product on the Cboe Exchange.
The Prospect of 21Shares’ XRP ETF
The crypto ETF issuer’s proposed offering will provide investors with direct exposure to XRP. Hence, the firm detailed its strategy in its XRP ETF S-1 registration statement. In a published statement, the Swiss firm reiterated its commitment to expanding U.S. investor access to the cryptocurrency asset class. 21Shares added,
“….we look forward to driving innovation in the U.S.”
The asset manager already has a position in the crypto ETF market. Its spot Bitcoin ETF is a joint offering with Cathie Wood’s ARK Invest. Its Ethereum ETF boasts one of the lowest management fees, thereby improving its attractiveness to investors. However, more than this track record is needed to secure the market regulator’s approval for the XRP ETF.
– Advertisement –
More importantly, an unresolved matter remains between the SEC and Ripple, the major company associated with XRP. Judge Analisa Torres ruled on July 13, 2023, that XRP is not a security, setting a precedent in the industry.
Despite this regulatory clarity, the legal battle between Ripple and the SEC has entered the appeals stage. This situation with XRP and Ripple raises doubts about 21Shares and other firms that have issued similar filings.
XRP ETF, Solana ETF, Litecoin ETF
Generally, the January approval of 11 spot Bitcoin ETFs marked a game-changing moment for the broader cryptocurrency industry. Not only did crypto enthusiasts see the SEC change its stance, but they also saw the possibility of having other crypto ETFs.
Six months after the Bitcoin ETF approval, its Ethereum counterpart followed suit. From there, netizens began to discuss the feasibility of crypto ETFs based on Solana (SOL), XRP, Shiba Inu (SHIB), and, more recently, Litecoin (LTC).
Asset managers quickly took the bold step of applying to list those ETFs. Bitwise filed the first XRP ETF S-1 application with the SEC after registering the product in Delaware. Canary Capital has taken a similar step, and now, 21Shares has joined the train.
VanEck submitted the first Solana ETF filing in the US, followed by 21Shares and, recently, Canary Capital. Notably, Canary Capital has also pioneered the push for a Litecoin ETF application.
XRP Price Action – Visible Recovery
Following the 21Shares XRP ETF filing, the coin has seen some improvements. According to current market data, the price of XRP has jumped 1.18% in the past 24 hours and is now trading for $0.5142. This outlook reflects the gradual rebound in the price of XRP.
With more XRP and Ripple ecosystem updates, a greater recovery may close in faster than expected. Amid the current price outlook, Bollinger Bands showed that XRP might soon see the biggest move in its history.
A green light from the SEC on the XRP ETFs may catalyze the rally faster in the long term. However, the ‘Moonvember’ narrative might help sustain the coin’s resilience in the short term.
