Ethereum
21Shares Considers XRP ETF Amid Record Ethereum ETF Launch
On July 23, 2024, U.S. financial markets celebrated the Launch of several Ethereum spot ETFs. The first day of trading saw a record volume of $1.1 billion, which is a testament to the strong interest and confidence investors have in ETFs. After BTC and ETH, many altcoins are set to join the ETF wagon, and XRP will be the hot cake if it succeeds in its regulatory battle.
Could XRP ETF Be Next?
Hany Rashwan, co-founder and CEO of 21Shares, recently expressed the company’s optimistic stance on XRP and its potential plans to launch a spot-based XRP ETF. It revealed its strategy in a interview with YouTube financial channel Paul Baron Network. Despite the delay in filing the ETF, Rashwan stressed that such a move aligns with 21Shares’ overall strategy.
Current position and research
21Shares is currently the largest issuer of XRP exchange-traded products (ETPs), managing $69.16 million in assets with a year-to-date return of 7.54%. Rashwan highlighted the positive investment potential of XRP based on extensive research and believes it could be the next big thing in the ETF space, given its community support.
Focus on global expansion
Although 21Shares has not yet filed an ETF application for XRP with the SEC, Rashwan assured that launching an XRP ETF is an integral part of their overall vision, extending beyond the US market. However, he clarified that legal clarity on XRP’s non-security status is crucial to eliminate regulatory concerns and move forward with the ETF launch.
Preference for Solana ETF
However, 21Shares and VanEck have chosen to pursue a Solana (GROUND) ETF on XRP. Rashwan noted that the decision was influenced by the similarities between Solana and Ethereum, which makes it easier to defend regulatory approval given the previous success of Ethereum’s ETF. The company currently offers spot ETFs for Bitcoin (Bitcoin) and Ethereum (ETH) and is also seeking approval for a Solana ETF.
This strategic direction underscores 21Shares’ commitment to expanding its product offering while navigating regulatory landscapes and capitalizing on emerging investment opportunities.
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