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The race to introduce the first spot XRP exchange-traded fund (ETF) has entered a critical phase, even as the broader crypto market faces ongoing volatility. On October 10, the U.S. Securities and Exchange Commission (SEC) received new S-1/A amendment filings from multiple issuers, including 21Shares, Bitwise, Franklin Templeton, WisdomTree, Grayscale, and Canary Capital.
21Shares Files CME-Linked XRP ETF
21Shares’ latest filing outlines a fund designed to track XRP’s price using the CME CF XRP-Dollar Reference Rate (XRPUSD_NY), a benchmark widely recognized by institutional investors. The ETF will operate as a Delaware trust, holding XRP in cold storage with Coinbase Custody Trust Company. Shares are planned to be listed on the Cboe BZX Exchange, offering investors direct exposure to XRP through standard brokerage accounts.
The filing specifies that the ETF will be passive, with no leverage or derivatives involved. Authorized Participants will create or redeem shares in exchange for cash or XRP based on the CME benchmark. The document also cautions that the ETF carries high risk and lacks FDIC insurance or protections under the Investment Company Act.
SEC Updates Could Accelerate ETF Approvals
Recent regulatory changes may shorten the approval process for crypto ETFs. Under the SEC’s new generic ETF listing standards, exchanges such as Nasdaq, Cboe, and NYSE can list spot crypto ETFs without undergoing a separate, case-by-case approval.
Previously, applications could take more than 240 days to process. The updated rules could reduce this timeframe to 60–75 days, offering a faster pathway for issuers awaiting approval.
Crypto analyst Diana noted that 21Shares and Canary Capital revised their filings to meet the updated standards. Revisions include:
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Clearer custody and redemption procedures
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Stronger surveillance-sharing agreements
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Full alignment with prior SEC feedback
“These updates are the type of cleanup typically done right before a fund is ready for market,” she commented on social media.
Potential Launch Timeline
If the SEC continues on its current trajectory, XRP ETFs could become available as early as the first quarter of 2026. The approval process involves several steps:
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Receipt acknowledgment letters from the SEC
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Exchange listing notices under the new rules
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Effective S-1 status
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Any conditional approvals that may follow
However, uncertainty remains. The SEC could still delay decisions due to political factors or ongoing government considerations.
What This Means for XRP Investors
The filings signal growing institutional interest in XRP and the increasing likelihood that the token could gain broader access via traditional investment vehicles. A spot XRP ETF would allow retail and institutional investors to gain exposure to XRP without directly managing wallets or custody, potentially widening the token’s adoption.
Investors should remain attentive to SEC developments, as approval timelines and regulatory updates will directly influence market sentiment and XRP’s price trajectory.
