- CoinShares’ Move: XRP ETF application aims to track Compass Crypto Reference Index XRP.
- Fierce Competition: Seven asset managers, including WisdomTree and Bitwise, submitted XRP ETF proposals.
- Pro-Crypto Shift: Trump’s administration and SEC nominee Paul Atkins boost ETF approval hopes.
In an ambitious move, leading digital asset manager CoinShares has filed an application with the United States Securities and Exchange Commission (SEC) to launch an XRP exchange-traded fund (ETF). The application, submitted yesterday, aims to offer investors a cost-effective way to gain exposure to XRP.
Details of the Filing
The proposed fund, aptly named the CoinShares XRP ETF, is designed to mirror XRP’s performance, as tracked by the Compass Crypto Reference Index XRP. This index reflects the value of XRP daily at 4 PM (New York Time).
CoinShares is positioned as the official sponsor of the ETF, while CSC Delaware Trust Company will act as the fund’s trustee. However, details regarding the administrator, custodian, and transfer agents remain undisclosed for now.
If approved, shares of the XRP ETF will trade on Nasdaq under a yet-to-be-revealed ticker symbol. According to the filing, these shares will be issued in blocks of 5,000 and will be accessible only to authorized participants.
Interestingly, an unnamed seed capital investor, affiliated with CoinShares, initiated the fund by purchasing an undisclosed amount of shares. These shares were subsequently redeemed for cash.
It’s worth noting, however, that the filing explicitly warns of the risks associated with investing in the XRP ETF, emphasizing that investors could potentially lose all their money.
A Surge in XRP ETF Applications
CoinShares is not alone in pursuing an XRP-specific ETF. In fact, several asset managers have already submitted their applications to the SEC, intensifying competition in this space.
At least seven applications for XRP-focused ETFs are currently under review by the SEC. These applicants include prominent names such as Bitwise, Canary Capital, WisdomTree, 21Shares, Rex Osprey, ProShares, and, of course, CoinShares.
Additionally, Bitwise and Grayscale are seeking approval for basket ETFs, which would feature multiple crypto assets, including XRP. Although the SEC has yet to acknowledge any XRP-specific ETF filings, it has already recognized the basket ETF proposals, indicating progress.
Optimism Among XRP Holders
Despite regulatory uncertainties, XRP proponents remain optimistic that at least one XRP ETF will gain approval by the end of 2025. This sentiment has gained momentum following the inauguration of Donald Trump as the 47th U.S. President, heading a pro-crypto administration.
In a move aligned with this optimism, President Trump has nominated Paul Atkins, a known crypto advocate, to serve as the next SEC chairman. Atkins’ leadership is widely expected to bring much-needed clarity and fairness to crypto regulations.
Additionally, Atkins’ potential involvement could expedite resolutions for ongoing enforcement actions, including the Ripple lawsuit. This high-profile case is currently under appeal in the Second Circuit, with the SEC filing its opening appeal brief on January 15 and Ripple aiming to submit its cross-appeal brief by April 16, 2025.
A favorable court ruling or settlement in this lawsuit could clear the path for XRP ETFs to launch, marking a significant milestone for the crypto space.
Final Thoughts
As regulatory winds shift under a pro-crypto administration, the likelihood of an XRP ETF becoming reality appears to be increasing. With multiple applications submitted and optimism building within the community, the coming months could be pivotal for XRP’s trajectory in the financial markets.
