Leading digital asset management firm CoinShares has taken a significant step toward broadening investment opportunities in the cryptocurrency space. The company applied with the United States Securities and Exchange Commission (SEC) to establish an exchange-traded fund (ETF) focused exclusively on XRP.
The proposed fund, named the CoinShares XRP ETF, is designed to offer investors a cost-efficient means to gain exposure to XRP. Its performance will be linked to the Compass Crypto Reference Index XRP, which tracks the asset’s value daily at 4 PM Eastern Time.
Structure of the Fund
According to the SEC filing, CoinShares will act as the official sponsor of the ETF, with CSC Delaware Trust Company serving as the trustee. While key operational roles—such as the fund’s administrator, transfer agent, marketing agent, and custodian—have yet to be revealed, the filing confirms that shares will be traded on Nasdaq under a ticker symbol that remains undisclosed.
In an exclusive structure, shares of the ETF will be issued in blocks of 5,000, limiting their purchase to authorized participants. A seed capital investor, affiliated with CoinShares, initiated the fund by acquiring an undisclosed number of shares. Interestingly, these seed shares were later redeemed for cash.
The filing also highlighted the risks associated with the fund, explicitly warning that investors could potentially lose their entire investment.
Growing Interest in XRP ETFs
CoinShares is not alone in seeking approval for an XRP-linked ETF. The SEC is currently reviewing a wave of applications for such funds, submitted by several high-profile asset managers, including Bitwise, WisdomTree, Canary Capital, Rex Osprey, 21Shares, and ProShares.
In addition to single-asset XRP ETFs, both Bitwise and Grayscale have proposed basket ETFs that incorporate XRP alongside other cryptocurrencies. Although the SEC has acknowledged the basket ETF filings, it has yet to formally address any of the XRP-exclusive applications.
Optimism Among XRP Supporters
Despite the regulatory uncertainties, optimism remains high among XRP enthusiasts. Many anticipate that at least one XRP-specific ETF will receive approval before the end of 2025, bolstered by a perceived shift in the U.S. regulatory environment under the new administration.
President Donald Trump, recently inaugurated for his second term, has appointed crypto-friendly figures to key positions. Among them is Paul Atkins, tapped to lead the SEC as chairman. Atkins, a known advocate for clearer crypto regulations, is expected to drive significant reforms, including resolving ongoing legal battles like the SEC’s case against Ripple.
Ripple Lawsuit’s Role in ETF Prospects
The SEC’s lawsuit against Ripple continues to play a pivotal role in the XRP ecosystem. The case, currently on appeal in the Second Circuit, has far-reaching implications for the crypto industry. On January 15, the SEC submitted its opening brief, while Ripple has requested until April 16, 2025, to file its cross-appeal.
A favorable resolution—whether through a court ruling or a settlement—could remove a major hurdle for XRP-focused ETFs, potentially opening the door for their approval.
As the crypto industry eagerly awaits updates, CoinShares’ initiative underscores the growing demand for regulated investment vehicles linked to digital assets like XRP. Should the SEC greenlight any of these applications, it would mark a significant milestone for both XRP and the broader crypto market.
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