If approved, 21Shares plans to list its trust on the Cboe BZX Exchange and appoint Coinbase Custody Trust Company as its custodian.
21Shares submitted an S-1 registration form to the Securities and Exchanges Commission on November 1 in order to establish a spot XRP ETF. The company will establish its 21Shares Core XRP Trust, which is listed on the Cboe BZX Exchange, and Coinbase Custody Trust Company, its custodian, if the regulator authorizes the filing.
In an effort to secure approval for their fillings, 21Shares submitted a registration form to the US regulator for a spot XRP trust, joining other companies such as Canary Capital and Bitwise.
The company’s spokesperson addressed the XRP trust filing: “21Shares remains dedicated to enhancing the accessibility of the cryptocurrency asset class to US investors, and we are eager to foster innovation in the United States.”
Nevertheless, the 21Shares registration request is the result of Ripple’s ongoing legal dispute with the SEC. The regulator initiated their legal dispute by alleging that the company had illegally sold XRP, which it had previously classified as an unregistered security, in order to raise more than $1.3 billion.
Approximately one year ago, Judge Analisa Torres of the U.S. District Court for the Southern District of New York rendered a ruling in favor of Ripple, determining that the programmatic sale of XRP was lawful and did not violate the securities law. Nevertheless, she did designate direct sales to institutional investors as securities, and in August, she reached a civil penalty agreement with Ripple for $125 million.
Brad Garlinghouse, CEO of Ripple, has criticized the commission for its irrationality, asserting that it should have abandoned the case years ago. Nevertheless, both parties are currently appealing portions of her decision.
Additionally, Garlinghouse has publicly stated that a spot XRP ETF is “inevitable.” The US Commission granted the asset management firm permission to issue its spot Bitcoin ETF, ARK21Shares Bitcoin ETF, in January following a protracted legal dispute.
The organization submitted an additional registration form for an exchange-traded fund that is associated with the Solana token in June. 21Shares remain listed on the SEC’s EDGAR database for its application as of August 26, 2024. Nevertheless, its Cboe 19b-4 form had been rejected. This implies that the organization may need to either amend its 19b-4 forms or resubmit its request in order to secure commission approval.
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