CoinShares, a leading digital asset management firm, has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an XRP exchange-traded fund (ETF). This move aims to provide investors with a regulated and cost-efficient way to gain exposure to XRP’s price movements.
Overview of the CoinShares XRP ETF
The proposed CoinShares XRP ETF will track the daily performance of XRP using the Compass Crypto Reference Index XRP, with valuations updated at 4 PM Eastern Time. Key structural details include:
- Sponsor: CoinShares
- Trustee: CSC Delaware Trust Company
- Listing Exchange: Nasdaq (ticker symbol pending)
- Share Availability: Restricted to blocks of 5,000 for authorized participants
The fund was initially seeded by an affiliate of CoinShares, though the exact capital amount remains undisclosed. The filing emphasizes high-risk disclosures, warning investors of potential total loss.
Growing Demand for XRP ETFs
CoinShares joins several major asset managers—including Bitwise, WisdomTree, and 21Shares—in seeking SEC approval for XRP-specific ETFs. Multi-asset proposals (e.g., Bitwise’s 10 Crypto Index ETF) incorporating XRP have also gained traction.
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Regulatory Optimism
Approval prospects hinge on:
- Pro-crypto SEC leadership under Chairman Paul Atkins.
- Resolution of the Ripple-SEC lawsuit, currently under appeal in the Second Circuit (cross-appeal brief due April 2025).
FAQs About the XRP ETF
1. When could the XRP ETF launch?
If approved, the ETF may debut by late 2025, contingent on regulatory clarity.
2. How does this ETF differ from others?
It focuses solely on XRP, unlike blended crypto ETFs (e.g., Grayscale’s proposal).
3. What risks are involved?
Volatility, regulatory uncertainty, and legal outcomes (e.g., Ripple case) pose significant risks.
Market Implications
A sanctioned XRP ETF could:
- Boost institutional adoption of XRP.
- Set a precedent for single-asset crypto ETFs.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry substantial risk—conduct independent research before investing.
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