21Shares Files for XRP-Based Fund Amid Skepticism Toward Crypto ETF Demand Outside Bitcoin Products

Crypto asset manager 21Shares launched its bid for a spot (XRP) exchange-traded fund as issuers considered more cryptocurrency investment vehicles.

Crypto asset manager 21Shares has filed documents for a XRP-based fund amid skepticism towards crypto ETF demand outside Bitcoin products.

The company dubbed its potential offering the 21Shares Core XRP Trust, according to an S-1 form sent to the U.S Securities and Exchange Commission on Monday. The XRP fund will trade on the New York Stock Exchange Arca if approved by regulators.

21Shares is the second wealth manager to file formal XRP ETF papers. Bitwise submitted a similar application in early October, after first registering a Delaware Trust for its XRP fund.

Firms have eyed cryptocurrency ETFs underpinned by altcoins ever since spot Ethereum (ETH) funds debuted on the U.S market in July. Several applications have been filed for Litecoin (LTC) ETFs, and rumors of a Solana (SOL) have persisted in crypto social media discussion.

Spot Bitcoin (BTC) ETFs, the world’s top crypto fund class, have been largely successful in their 11 months of trading. BlackRock’s IBIT beat decades-old products in year-to-date volume, and the entire BTC ETF complex has over $72 billion in assets.

Ethereum ETFs have experienced modest demand in comparison, with less than $10 billion in investor cash. The lackluster spot ETH ETF numbers have spurred doubts about whether altcoin funds have a market on Wall Street.

Bitwise Chief Investment Officer Matt Hougan said in a recent interview that Ethereum ETFs came “too early” but will ultimately succeed. Hougan noted that investors were still digesting Bitcoin’s message, arguing that institutions would eventually adjust to Ethereum’s value proposition.

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