The countdown has officially begun for a potential XRP spot exchange-traded fund (ETF) in the United States, following 21Shares’ submission of a modified prospectus that triggers a 20-day review period as per U.S. securities regulations. This development brings renewed optimism among XRP enthusiasts as they await the Securities and Exchange Commission’s (SEC) decision.
21Shares Triggers 20-Day Countdown
This significant milestone was first highlighted by Bloomberg ETF analyst Eric Balchunas, who announced on social media that “21Shares has just filed an 8(a) for its spot XRP ETF. The 20-day clock is now ticking.”
According to Section 8(a) of the U.S. Securities Act, a registration statement automatically becomes effective after 20 days unless the SEC intervenes to delay or modify it. The modified filing removes any language suggesting a “delaying amendment,” effectively starting the countdown for potential approval.
If the SEC does not act within the 20-day timeframe, the filing will automatically go into effect, paving the way for the ETF’s launch. This procedural step has also been taken by other potential XRP ETF issuers, signaling increasing competition among asset managers to bring the first U.S.-based spot XRP ETF to market.
Canary Capital Joins the XRP ETF Race
21Shares’ filing follows a similar action by Canary Capital Group, which has also entered its own 20-day countdown phase for its XRP ETF. In a social media post, Canary Capital urged investors to “get ready,” announcing that the Canary XRP ETF (XRPC) will be “available soon.”
This ETF will trade on Nasdaq under the ticker symbol XRPC, keeping XRP in custody with both Gemini Trust Company and BitGo Trust Company. The fund plans to use the CoinDesk XRP CCIX New York rate as its official pricing benchmark.
The timing of Canary Capital’s move is noteworthy as the firm recently launched the first U.S. spot ETFs for Litecoin (LTC) and Hedera (HBAR) in late October, enhancing investor confidence in further crypto ETF approvals, including for XRP.
Ripple Gains Momentum Ahead of Potential Approval
The progress of the XRP ETF coincides with a pivotal period for Ripple Labs and the broader XRP ecosystem. Ripple has announced new partnerships with Mastercard and WebBank to support the backing of its stablecoin RLUSD, while the XRP Ledger (XRPL) has surpassed 100 million registered accounts.
Ripple’s RLUSD stablecoin has also reached a significant milestone, crossing the $1 billion mark in circulation. These developments, combined with the ETF dynamics, have fueled optimism that institutional interest in XRP could surge if an ETF gains regulatory approval.
Market participants note that an approved U.S. spot XRP ETF would provide traditional investors with regulated exposure to XRP, potentially increasing liquidity and market adoption. As the 20-day countdown continues, the crypto community remains vigilant, anticipating that if the SEC does not issue any delays, the 21Shares XRP ETF could soon become a significant addition to the growing array of digital asset investment products in the U.S.
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