21Shares initiates a 20-day countdown for its XRP ETF following SEC filing, with potential launch by November 27 if SEC does not intervene.
21Shares has started a 20-day countdown for its XRP ETF after filing an 8(a) submission with the SEC. This filing could lead to automatic approval if the SEC does not intervene within the window.
The ETF is set to trade under the ticker symbol TOXR on the Cboe BZX Exchange. This filing is a significant step toward offering a new way for investors to gain exposure to XRP.
21Shares filed for its XRP ETF under the 8(a) provision of U.S. securities law. This provision allows the ETF to automatically become effective if the SEC does not act within 20 days.
If the SEC remains silent during this period, the ETF will be approved without further delay. This filing marks a key moment for 21Shares, as it works to introduce an XRP-backed investment product.
Eric Balchunas, an ETF analyst at Bloomberg, commented on the filing, saying, “21Shares just dropped an 8(a) for their spot XRP ETF. 20-day clock in effect.” His statement underscores the urgency of the 20-day review window that could lead to automatic approval of the ETF.
The ETF will track the price of XRP, providing institutional investors an easy way to invest in the cryptocurrency. Custody of XRP will be managed by regulated entities such as Coinbase Custody Trust and BitGo Trust Company, ensuring secure storage.
Authorized participants, including Jane Street Capital, will be able to create or redeem ETF shares.
21Shares is not the only firm pursuing an XRP-backed ETF. Other institutions, like Franklin Templeton and Grayscale Investments, have also made similar filings.
These moves suggest a coordinated effort by multiple players in the market to launch XRP ETFs. Such filings signal growing institutional interest in XRP and its potential role in mainstream finance.
This could coincide with other potential XRP ETF launches and create a new phase of institutional involvement in the market. The approval of XRP ETFs would offer a more accessible way for large investors to gain exposure to XRP.
In addition to 21Shares, Canary Capital is targeting a November 13 launch for its own XRP ETF, pending Nasdaq approval.
This indicates a broader trend of crypto-focused investment firms preparing to launch XRP-backed ETFs. Such developments could bring greater liquidity to XRP and allow it to be traded alongside Bitcoin and Ethereum in traditional financial markets.
The growing number of filings for XRP ETFs suggests that XRP may soon have more institutional exposure. This could change how the token is viewed in the market, potentially increasing its adoption and liquidity.
As the filing process continues, attention will focus on how these developments could affect the future of XRP in mainstream finance.
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