The race to launch the first spot XRP exchange-traded fund (ETF) in the United States is intensifying as two major asset managers filed regulatory amendments within days of each other. 21Shares US LLC and Franklin Holdings LLC submitted updated Form S-1 registration statements to the U.S. Securities and Exchange Commission (SEC), advancing efforts to list XRP-tracking ETFs on major U.S. exchanges.
21Shares and Franklin Lead the Charge
Bloomberg ETF analyst Eric Balchunas noted on social media platform X on Nov. 7 that 21Shares had filed an 8(a) amendment for its spot XRP ETF, stating, "20-day clock in effect." This suggests the SEC has 20 days to either approve or deny the proposal. The fund, expected to trade on the Cboe BZX Exchange, will track the CME CF XRP—Dollar Reference Rate — New York Variant, administered by CF Benchmarks Ltd. It will not employ derivatives, leverage, or speculative strategies. Custodial responsibilities will be shared among Coinbase Custody Trust Company, Anchorage Digital Bank, and Bitgo Trust Company, while Bank of New York Mellon handles fund administration and NAV calculations.
Franklin Holdings LLC filed Amendment No. 3 for its Franklin XRP ETF on Nov. 4. The proposed ETF, ticker "XRPZ," aims to list on the NYSE Arca and will follow the same reference rate benchmark. Franklin’s filing underscores the growing competition among traditional asset managers seeking to offer regulated exposure to XRP.
Institutional Demand and Regulatory Tailwinds
The filings come amid a regulatory landscape that has become more favorable for XRP since a federal court ruled in 2023 that XRP is not a security in programmatic sales. This legal clarity has emboldened issuers to pursue ETF listings. In addition to 21Shares and Franklin, Canary Capital CEO Steven McClurg stated this week that he hopes to launch an XRP ETF next week, suggesting a flurry of activity.
Industry observers believe that a spot XRP ETF could unlock significant institutional inflows, mirroring the impact seen with Bitcoin and Ethereum ETFs. The product would allow traditional investors to gain exposure to XRP through a regulated, familiar vehicle without the complexities of self-custody or direct exchange trading.
Key Features and Custody Details
Both proposed ETFs use a multi-custodian model, which enhances security and reduces counterparty risk. The CME CF XRP-Dollar Reference Rate — New York Variant is a widely recognized benchmark, ensuring price reliability. The funds will be passively managed, simply tracking the price of XRP.
The SEC’s decision on these filings is eagerly awaited. If approved, the XRP ETF could begin trading within weeks, potentially boosting XRP’s market cap and liquidity. However, the Commission may still raise concerns about market manipulation and custody, given XRP’s relatively smaller market compared to Bitcoin.
Conclusion
The simultaneous filing amendments by 21Shares and Franklin signal a decisive push toward the first U.S. spot XRP ETF. With institutional demand surging and regulatory frameworks evolving, the crypto industry is poised for another landmark product. Investors and analysts alike will watch the SEC’s 20-day clock closely.