21Shares Targets XRP ETF as Ethereum ETF Launch Sets New Record

Several spot Ethereum ETFs were successfully launched, leading to a surge in trading volume and indicating significant investor interest. This milestone was marked on July 23, 2024, in the U.S. financial markets, with the initial trading day recording a remarkable volume of $1.1 billion. The strong reception of ETFs by investors underscores a growing confidence in this investment vehicle. Following Bitcoin (BTC) and Ethereum (ETH), many other altcoins are poised to join the ETF trend, with XRP potentially emerging as a prominent player pending regulatory hurdles.

Hany Rashwan, the co-founder and CEO of 21Shares, shared the company’s optimistic outlook on XRP and its intentions to introduce a spot-based XRP ETF. In an interview with the financial YouTube channel Paul Baron Network, Rashwan outlined the strategic significance of this move within 21Shares’ global agenda, despite delays in the ETF filing process.

21Shares currently stands as the largest issuer of XRP exchange-traded products (ETPs), managing assets worth $69.16 million with a year-to-date return of 7.54%. Rashwan emphasized the robust investment prospects of XRP, backed by comprehensive research and community backing, positioning it as a key contender in the ETF landscape.

While an ETF application for XRP has not yet been submitted to the Securities and Exchange Commission (SEC), Rashwan affirmed the pivotal role of launching an XRP ETF in the company’s worldwide expansion strategy, extending beyond the U.S. market. However, he stressed the importance of obtaining legal clarity on XRP’s non-security classification to address regulatory uncertainties and facilitate the ETF’s rollout.

In a strategic move, 21Shares and VanEck have prioritized the development of a Solana (SOL) ETF over XRP. Rashwan cited the regulatory similarities between Solana and Ethereum as a driving factor behind this decision, leveraging Ethereum’s successful ETF precedent to bolster the case for regulatory approval. The company presently offers spot ETFs for Bitcoin (BTC) and Ethereum (ETH) while also pursuing approval for a Solana ETF.

As the anticipation around XRP’s potential as a significant ETF asset grows, the market is closely monitoring its trajectory as a potential game-changer in the evolving landscape of digital asset investments.