On November 1, asset manager 21Shares officially filed a Form S-1 with the United States Securities and Exchange Commission (SEC) to seek approval for a spot XRP exchange-traded fund (ETF). If approved, the Core XRP Trust shares would be listed and traded on the Cboe BZX Exchange, making 21Shares the third firm to submit a spot XRP ETF application, following similar filings by Canary Capital and Bitwise.

The proposed XRP ETF would not offer direct exposure to the XRP token but rather provide investors with an “indirect market access opportunity.” Coinbase Custody Trust Company is slated to act as the custodian for XRP assets in the trust, pending regulatory approval.

The SEC has shown openness to crypto-based ETFs in recent months, approving both spot Bitcoin and Ether ETFs in 2024. However, it has yet to respond to applications for a spot XRP ETF, partly due to its ongoing legal dispute with Ripple Labs. In a high-profile ruling earlier this year, a federal judge found that XRP was not a security in cases of programmatic sales on exchanges, though both the SEC and Ripple Labs have appealed parts of the decision.

The momentum for crypto ETFs has increased since the SEC approved spot Bitcoin ETFs in January, prompting asset management firms to explore funds tied to other digital assets. Besides XRP, firms like VanEck, 21Shares, and Canary Capital have recently applied for spot Solana ETFs, and Canary also filed for a spot Litecoin ETF in October.

With the potential for lengthy regulatory delays or comment periods, there is speculation about how upcoming political shifts could influence the SEC’s stance on crypto-related products. Some experts predict that if Democrat Kamala Harris or Republican Donald Trump wins the next election, they could replace current SEC Chair Gary Gensler, possibly impacting the future of crypto regulations in the U.S.