The race to launch the first spot XRP exchange-traded fund (ETF) in the United States has intensified dramatically this week as two major asset managers filed amended registration statements with the Securities and Exchange Commission (SEC). 21shares US LLC and Franklin Holdings LLC both submitted updated Form S-1 filings, signaling that the approval process for a direct XRP ETF is entering its final stages. Bloomberg ETF analyst Eric Balchunas noted on social media platform X that 21shares’ third amended filing triggered a 20-day clock under SEC rules, meaning a decision could come within weeks.
Key Details of the Proposed XRP ETFs
21shares’ fund, expected to list on the Cboe BZX Exchange, will track the CME CF XRP-Dollar Reference Rate — New York Variant, administered by CF Benchmarks Ltd. The ETF will not employ derivatives, leverage, or speculative strategies, relying instead on a pure spot exposure. Custody will be split among Coinbase Custody Trust Company, Anchorage Digital Bank, and Bitgo Trust Company, while the Bank of New York Mellon will handle fund administration and net asset value calculations.
Franklin Holdings filed Amendment No. 3 to its Form S-1 on November 4 for its Franklin XRP ETF, which will trade on the NYSE Arca under the ticker “XRPZ” and follow the same CME CF benchmark. The near-simultaneous filings from two established issuers underscore the surging institutional appetite for regulated crypto exposure despite ongoing market volatility. Additionally, Canary Capital CEO Steven McClurg stated this week that he hopes to launch an XRP ETF as early as next week, further intensifying competition.
Market Implications and Regulatory Outlook
The approval of a spot XRP ETF would mark a transformative milestone for the XRP ecosystem. Drawing parallels to the successful launch of Bitcoin ETFs last year, market participants anticipate that an XRP ETF could unlock billions in institutional inflows, boosting liquidity and price discovery. XRP’s price has remained relatively stable during the filing period, but sentiment is clearly bullish.
While the SEC has not yet issued a formal stance on XRP ETFs, the willingness of 21shares and Franklin to file amendments suggests growing confidence that the regulator will approve the products. The resolution of Ripple’s long-running legal battle with the SEC has removed a major overhang, and analysts now see a higher probability of approval. If the first XRP ETF is greenlit, it could trigger a wave of similar filings from other asset managers, creating a domino effect similar to what was seen with Bitcoin and Ethereum ETFs.
Custody and Operational Framework
Both proposed ETFs employ a multi-custodian model to mitigate risks. The involvement of Coinbase Custody, Anchorage Digital, and Bitgo — all experienced digital asset custodians — combined with Bank of New York Mellon’s traditional finance expertise, provides a robust operational backbone. Share creation and redemption processes are expected to follow standard ETF mechanics, with details to be disclosed in subsequent filings.
In summary, the XRP ETF race has shifted from speculation to tangible action. 21shares and Franklin have officially triggered the countdown, and the crypto market is watching closely. Should no major objections arise during the 20-day review period, the first US spot XRP ETF could debut before the end of 2025, potentially reshaping the landscape for digital asset investment products.