Market Data 
- 21Shares, Bitwise, and Canary Capital file for XRP ETFs, signaling strong institutional interest.
- Grayscale relaunches XRP Trust and seeks to convert multi-asset funds to ETF.
- Ripple’s Q3 report: CME sets XRP reference price, Bitnominal plans XRP futures launch.
New trends emerging in the cryptocurrency markets point to a surge of institutional XRP users. Ripple CEO Brad Garlinghouse recently highlighted this trend, as several big asset managers, such as 21Shares, Bitwise, and Canary Capital, have applied for XRP ETFs. Grayscale is also working to convert its multi-asset fund containing XRP to an ETF.
The message from the market is clear – institutional interest in XRP products is stronger than ever. @BitwiseInvest, @CanaryFunds, and @21Shares (just this morning!) filed S-1s for XRP ETFs while @Grayscale launched an XRP Trust and filed to convert its multi-asset fund,…
— Brad Garlinghouse (@bgarlinghouse) November 1, 2024
Institutional Demand Drives XRP ETF Filings
21Shares is an outstanding asset manager that has joined the list of companies applying for spot-based XRP ETF. The company submitted an S-1 registration form to the SEC for the proposed fund, 21Shares Core XRP Trust, which will allow investors to hold cryptocurrency in XRP without requiring them to hold the asset directly.
This ETF would track the spot price of XRP and, if approved, would be listed in the Cboe BZX exchange with Coinbase Custody Trust Company as the fund administrator.
This filing closely follows similar applications by Canary Capital and Bitwise, both of which submitted S-1 filings for spot-based XRP ETFs. Moreover, Grayscale Investments has reintroduced XRP Trust and sought an ETF of change for its multiple-asset investment product containing XRP. These filings indicate a positive change in institutional view regarding XRP, which firms now see fit to include in mainstream investment products.
Legal Clarity Boosts Institutional Confidence in XRP
Garlinghouse’s statements on institutional interest also reflect Ripple’s ongoing legal battle with the SEC, which ruled in July that XRP is not inherently a security.
This decision has allowed U.S.-based exchanges to relist XRP, offering greater regulatory clarity for global platforms. Garlinghouse noted that the SEC’s appeal against the ruling did not deter institutional interest in XRP products. On the contrary, demand has continued to grow, underscoring the resilience of institutional interest despite regulatory hurdles.
The court’s decision has boosted regulatory transparency, enabling institutional investors to launch structured investment products like ETFs, leading companies like 21Shares, Bitwise, and Grayscale to proceed with their plans for XRP-based funds.
Institutional Products Thrive Amid Regulatory Scrutiny
In light of the SEC’s legal actions, Garlinghouse addressed the agency’s stance, suggesting its continued resistance to crypto innovation could harm its credibility. Despite the SEC’s appeal against Ripple, which challenges aspects of XRP’s legal status, the persistence of institutional filings for XRP ETFs shows that companies remain committed to advancing these offerings.
Recent reports indicate that at least three of the four XRP-focused filings were made following the SEC’s appeal notice, further underlining the strong interest among institutional players.
Ripple’s third-quarter report highlighted additional industry developments, such as the CME establishing an XRP reference price and Bitnominal’s plans to launch an XRP futures product.
