21Shares Files for an XRP-Focused ETF With the SEC

On Friday, they filed a request with the SEC to approve an XRP-focused ETF. An ETF is a type of investment fund that simplifies buying and holding

On Friday, 21Shares filed a request with the Securities and Exchange Commission (SEC) to launch an XRP-focused exchange-traded fund (ETF).

An ETF is a type of investment fund that simplifies buying and holding certain assets, like stocks or cryptocurrencies. It allows people to invest without owning the assets directly. This particular ETF would be a “spot” fund. This means it would directly track the value of XRP itself. Not just related companies or assets.

Bringing XRP to Everyday Investors

If approved, 21Shares’ ETF, called the 21Shares Core XRP Trust, would be listed on the Cboe BZX Exchange. One of the big stock exchanges in the U.S. Instead of dealing with the ups and downs of buying XRP on their own, investors could buy shares of this fund to get a piece of the action. Coinbase Custody Trust Company, which is known for keeping digital assets safe, would act as the custodian, or the “safe keeper,” of the XRP used in this fund.

Getting an ETF approved by the SEC is no easy feat. Over the past year, several companies have filed requests for crypto ETFs. The SEC approved crypto-based ETFs for the first time just earlier this year. Since then, big names like BlackRock and Fidelity have joined the race to launch similar funds. Seeing the potential in making cryptocurrencies easier for everyday investors to access.

21Shares ✨ XRP ✨ ETF Filing ✨ https://t.co/uzcUzYgON3 pic.twitter.com/NLDeilAEkT

— Digital Assets Daily (@AssetsDaily) November 1, 2024

Why All the Fuss About Crypto ETFs?

ETFs have become a popular way for investors to gain exposure to assets without buying them directly. Crypto ETFs make it possible for people to invest in digital currencies through a more familiar platform, like a brokerage account.

With crypto prices swinging up and down, many people may feel like they’re jumping on a roller coaster. But through a crypto ETF, they can take a seat without the same risks that come with holding actual coins.