The countdown for a potential US spot XRP exchange-traded fund (ETF) has officially begun. Asset manager 21Shares filed an amended prospectus that activates a 20-day window under Section 8(a) of US securities law.
This move marks a significant step toward possible approval from the Securities and Exchange Commission (SEC). The development has sparked renewed optimism within the XRP community.
21Shares Triggers 20-Day Countdown for XRP ETF
Bloomberg ETF analyst Eric Balchunas first highlighted the development on X (formerly Twitter). He noted that “21Shares just dropped an 8(a) for their spot XRP ETF. 20 day clock in effect.”
The Section 8(a) provision works automatically after 20 days unless the SEC intervenes. The registration statement becomes effective unless regulators delay or request amendments.
The amended filing removes any “delaying amendment” language. This means the countdown to potential effectiveness is now underway. If the SEC does not act within 20 days, the filing would become effective automatically.
This would pave the way for the fund’s launch. Other prospective XRP ETF issuers have also taken this procedural step. The move signals increasing competition among asset managers to bring the first US spot XRP ETF to market.
Canary Capital Joins the XRP ETF Race
The 21Shares filing follows a similar move by Canary Capital Group. Their XRP ETF filing also entered its 20-day countdown window earlier.
Canary Capital told investors to “get ready” in a social media post. The firm added that the Canary XRP ETF (XRPC) is “coming soon.”
The proposed ETF would trade on Nasdaq under the ticker XRPC. It would hold XRP in custody with Gemini Trust Company and BitGo Trust Company. The fund would use the CoinDesk XRP CCIX New York Rate as its official pricing benchmark.
Canary Capital’s entry comes after a successful launch in late October. The firm launched the first US spot ETFs for Litecoin (LTC) and Hedera (HBAR). This move strengthened investor confidence in additional crypto ETF approvals, including for XRP.
Ripple Momentum Builds Ahead of Potential Approval
The XRP ETF progress adds to an already significant period for Ripple Labs. The broader XRP ecosystem has seen notable developments recently.
Ripple announced new partnerships with Mastercard and WebBank. These partnerships support settlement for its RLUSD stablecoin. Meanwhile, the XRP Ledger (XRPL) surpassed 100 million ledgers recorded.
Ripple’s stablecoin RLUSD also achieved a major milestone. The stablecoin crossed the $1 billion circulation mark.
These milestones, coupled with ETF momentum, have fueled optimism. Market participants believe institutional interest in XRP could rise sharply if an ETF gains regulatory clearance.
A US-approved spot XRP ETF would provide traditional investors with regulated exposure to XRP. This could potentially drive liquidity and adoption through established channels.
As the 20-day countdown unfolds, the crypto community remains watchful. Should the SEC refrain from issuing delays, the 21Shares XRP ETF could soon join the expanding lineup of digital asset investment products in the US.
