Ripple CEO Says Institutional Interest in XRP is Stronger Than Ever Amid 21Shares XRP ETF Filing

Ripple CEO Brad Garlinghouse comments on the growing institutional interest in XRP following 21Shares’ filing to launch a spot-based XRP ETF.

21Shares Files to Launch XRP ETF

Yesterday, leading asset manager 21Shares became the latest company to submit an S-1 registration to the U.S. SEC for an XRP exchange-traded fund (ETF). The move comes weeks after companies like Canary Capital and Bitwise submitted a similar application.

According to the latest filing, the proposed fund, dubbed 21Shares Core XRP Trust, seeks to give investors indirect exposure to the seventh-biggest cryptocurrency by market cap. Typically, the fund will track XRP’s spot price without investors having direct access to the asset.

In addition, Coinbase Custody Trust Company will serve as the custodian of the fund’s underlying asset. If approved, shares of the Core XRP Trust will be listed and traded on the Cboe BZX exchange.

Strong Institutional Interest in XRP

Following 21Shares’ XRP Trust filing, Ripple CEO Brad Garlinghouse took to X to highlight the growing institutional interest in XRP. According to him, companies like Canary Capital, Bitwise, and 21Shares have submitted S-1 filings to launch spot-based XRP ETFs.

Additionally, he mentioned Grayscale Investments’ relaunch of its XRP Trust and the company’s move to file for the conversion of its multi-asset fund containing a basket of assets like XRP into a spot-based ETF. Amid these developments, Garlinghouse emphasized that institutional interest in XRP is stronger than ever.

Meanwhile, the Ripple CEO took a swipe at the SEC for orchestrating an unsuccessful war against crypto. According to him, the SEC has continued to lose its legal tussle against the industry, adding that the regulator’s disregard for the court’s order will further damage its reputation and credibility.

Garlinghouse’s comment suggests that XRP has continued to attract institutional interest despite the SEC’s enforcement actions.

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,… https://t.co/d5Icksw4Sj

— Brad Garlinghouse (@bgarlinghouse) November 1, 2024

Institutional Interest in XRP Soar Despite SEC Appeal

Notably, Ripple and XRP are among the victims of the SEC’s enforcement actions. A federal court in New York rejected the SEC’s claim that XRP is a security. The court declared that XRP in itself is not a security and that Ripple’s programmatic sales and other distributions of the coin do not constitute investment contracts. The SEC only won the ruling on institutional sales, which were deemed a security.

Unsatisfied with the ruling, the SEC filed an appeal notice to overturn the programmatic sales and other distribution decisions.

Nonetheless, the appeal has not prevented companies from seeking to launch ETFs tied to XRP. Three of the four filings for XRP institutional products last month were submitted after the SEC appealed the Ripple ruling.

FOX Business Journalist Eleanor Terrett disclosed that a CEO in one of these companies demonstrated a rebellious stance against the SEC’s continued regulatory obstacles.

“Fighting the system. Damn the Man!” the unnamed CEO told Terrett.

Source