21Shares, a major issuer of exchange-traded funds, has just joined the XRP ETF race, according to a Friday filing with the U.S. Securities and Exchange Commission (SEC).
If approved, the recently proposed 21Shares Core XRP Trust is going to be listed on the Cboe BZX Exchange.
Alex DovbnyaThe product will track the performance of the XRP token based on the recently launched CME CF Ripple-Dollar Real-Time Index (XRPUSD_RTI).
According to 21Shares, the ETF product is supposed to provide shareholders with a more "cost-efficient way" for investors to get exposure to XRP compared to purchasing and holding the XRP-affiliated token directly.
Notably, the filing has stressed that XRP is not a security. As reported by U.Today, the SEC recently confirmed that it was not going to challenge the legal status of the controversial token during the ongoing appeal process in the Ripple case.
The firm has listed such risk factors as an increase in the supply of XRP, manipulative trading, and XRPL forks. A "final determination" that the token is a security has also been listed among potential risk factors in the filing.
As reported by U.Today, cryptocurrency index fund manager Bitwise kicked off the XRP ETF race on Oct. 1. Later, Canary Capital also jumped into the fray with its own XRP ETF filing.
Despite the fact that the odds of an XRP ETF being launched this year are very slim, Ripple CEO Brad Garlinghouse is certain that the approval of such a product is "inevitable."
Earlier this week, the SEC acknowledged the attempt of leading asset manager Grayscale to convert its large-cap fund into an ETF. Notably, the fund has exposure to XRP as well as several other altcoins such as Avalanche (AVAX).
Tomiwabold Olajide
Godfrey Benjamin
Vladislav Sopov
Dan Burgin