A countdown has officially begun for the potential approval of a spot XRP exchange-traded fund (ETF) in the U.S. Following a modified prospectus submission by asset manager 21Shares, optimism has surged in the XRP community as they await the Securities and Exchange Commission’s (SEC) decision.
Countdown Initiated for 21Shares’ XRP ETF
The countdown was first highlighted by Bloomberg ETF analyst Eric Balchunas, who noted on social media that “21Shares has submitted a section 8(a) for its spot XRP ETF. The 20-day clock is now in effect.”
Section 8(a) of the U.S. Securities Act mandates that a registration statement automatically goes into effect after 20 days unless the SEC intervenes to delay or amend it.
By removing any language suggesting a “delay amendment,” the modified filing confirms that the countdown towards potential effectiveness is in motion. If the SEC remains inactive during the 20-day window, the registration will become effective, enabling the fund’s launch.
This procedural milestone has also been pursued by other potential XRP ETF issuers, indicating a growing competition among asset managers to be the first to market with a U.S. spot XRP ETF.
Canary Capital Joins XRP ETF Race
The filing from 21Shares follows a similar submission by Canary Capital Group, which is also now in its 20-day countdown window for its XRP ETF.
Canary Capital encouraged investors to “get ready” in a social media announcement, stating that the Canary XRP ETF (trading under the symbol XRPC) will be “available soon.”
The proposed ETF is set to trade on Nasdaq and will hold XRP in custody with Gemini Trust Company and BitGo Trust Company.
The ETF will use the CoinDesk XRP CCIX New York index as its official pricing gauge.
This latest development comes after Canary Capital successfully launched the first U.S. spot ETFs for Litecoin (LTC) and Hedera (HBAR) in late October, boosting investor confidence in the potential approval of further crypto ETFs, including XRP.
Ripple’s Momentum Grows Ahead of Potential Approval
The advancements surrounding the XRP ETF coincide with a significant period for Ripple Labs and the broader XRP ecosystem.
Ripple recently announced new partnerships with Mastercard and WebBank to support the rollout of its stablecoin RLUSD, while the XRP Ledger (XRPL) has surpassed 100 million recorded transactions.
Additionally, Ripple’s RLUSD stablecoin has achieved a significant milestone, exceeding $1 billion in circulation.
These developments, combined with the ETF momentum, have fueled optimism that institutional interest in XRP could sharply increase if an ETF receives regulatory approval.
Market participants note that an approved U.S. spot XRP ETF would provide traditional investors with regulated exposure to XRP, potentially enhancing liquidity and adoption.
As the 20-day countdown progresses, the crypto community remains vigilant. Should the SEC refrain from issuing delays, the 21Shares XRP ETF may soon become the latest addition to the growing array of digital asset investment products in the United States.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
