The Countdown Begins for XRP Spot ETF Approval as 21Shares Files Modified Prospectus
The countdown for a potential approval of the XRP spot Exchange-Traded Fund (ETF) in the United States has officially begun. Asset manager 21Shares has submitted a modified prospectus, initiating a 20-day window that could lead to a significant shift in the cryptocurrency landscape should the Securities and Exchange Commission (SEC) grant its endorsement.
21Shares Triggers a 20-Day Countdown
The pivotal development was first highlighted by Bloomberg ETF analyst Eric Balchunas, who shared on X (formerly Twitter) that “21Shares has just filed an 8(a) for its spot XRP ETF. A 20-day clock is now ticking.”
Under 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 request modifications. The filed prospectus has removed any language regarding a “delay modification,” signaling that the countdown to potential efficacy is officially in progress.
If the SEC remains inactive within the 20-day period, the filing will automatically take effect, paving the way for the ETF’s launch. This procedural step has also been observed among other potential XRP ETF issuers, indicating growing competition among asset managers to introduce the first U.S. spot XRP ETF.
Canary Capital Joins the Race for XRP ETFs
The 21Shares filing follows a similar move by Canary Capital Group, whose application for an XRP ETF has also entered its 20-day countdown window. In a message shared on social media, Canary Capital urged investors to “get ready,” announcing that the Canary XRP ETF (XRPC) is “coming soon.”
This proposed ETF would trade on Nasdaq under the symbol XRPC, custodially holding XRP with Gemini Trust Company and BitGo Trust Company, using the CoinDesk XRP CCIX New York rate for pricing. Canary Capital’s foray into this space comes on the heels of its successful launch of the first U.S. spot ETFs for Litecoin (LTC) and Hedera (HBAR) at the end of October, enhancing investor confidence in the potential for further crypto ETF approvals, including for XRP.
Ripple Gains Momentum Ahead of Potential Approval
The developments surrounding the XRP ETF coincide with a significant period for Ripple Labs and the broader XRP ecosystem. Recently, Ripple announced new partnerships with Mastercard and WebBank to support the rollout of its stablecoin, RLUSD, while the XRP Ledger (XRPL) surpassed 100 million recorded entries.
Ripple’s RLUSD stablecoin has also achieved a notable milestone, exceeding $1 billion in circulation. These advancements, coupled with the ETF momentum, have sparked optimism that institutional interest in XRP could surge, particularly if an ETF gains regulatory approval.
Market participants note that an approved spot XRP ETF in the U.S. would provide traditional investors with regulated access to XRP, potentially boosting liquidity and adoption. As the 20-day countdown unfolds, the cryptocurrency community remains vigilant. If the SEC does not issue delays, the 21Shares XRP ETF could soon become the latest addition to the expanding array of digital asset investment products in the United States.
