Thomas Daniels
Crypto asset management firm 21Shares has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC), initiating the regulatory process for a spot XRP exchange-traded fund (ETF). This proposed fund, dubbed the 21Shares Core XRP Trust, marks the second XRP-focused ETF application, following a similar filing by Bitwise in October after it established an XRP Trust in Delaware.
The move underscores a broader trend among issuers to expand beyond Bitcoin-focused ETFs, exploring new cryptocurrency-based funds as potential investment vehicles. Since the debut of spot Ethereum ETFs in July, several firms have signaled interest in altcoin-backed ETFs. Canary Capital, for example, filed for a Litecoin ETF, and market speculation regarding a Solana ETF has circulated across social media.
While Bitcoin ETFs have gained robust traction, with BlackRock’s IBIT notably outperforming older funds in terms of year-to-date trading volume, the sector is still evaluating the appeal of altcoin ETFs. Spot Bitcoin ETFs currently hold over $72 billion in assets, establishing themselves as the dominant crypto ETF product. In contrast, Ethereum ETFs have seen more modest demand, collectively holding under $10 billion.
Commenting on Ethereum ETFs, Bitwise CIO Matt Hougan observed that while the funds launched “too early” in terms of market readiness, they have long-term potential as investors increasingly understand Ethereum’s unique value. Hougan suggested that institutional investors might need more time to recognize the strategic role of non-Bitcoin crypto assets, particularly as they adapt to the market’s evolving asset landscape.
