XRP News Today: 21Shares XRP ETF Triggers 20-Day Clock, Signals Institutional Adoption Threshold

21Shares has triggered a 20-day countdown for potential automatic approval of its spot XRP exchange-traded fund (ETF), initiating a regulatory process that could see the product listed on the Cboe BZX Exchange by November 27, as Coinotag reported. The Swiss-based firm filed an 8(a) amendment with the Securities and Exchange Commission (SEC), a procedural move that bypasses prolonged review unless the agency intervenes, according to Coinrise. This development follows a broader industry shift, as regulators under Chair Paul Atkins have streamlined crypto ETF approvals from 240 to 75 days, reflecting growing institutional confidence in digital assets, Coinotag reports.

The proposed ETF, structured as an investment trust, will track XRP's price using the CME CF XRP Dollar Reference Rate, Coinotag reports. Unlike speculative or leveraged products, it aims to offer direct exposure to XRP without derivatives, aligning with the SEC's recent focus on straightforward crypto-tracking vehicles, Coinotag notes. 21Shares US LLC will act as the initial seed investor, purchasing 10,000-share baskets to custody XRP through providers like Coinbase Custody and Anchorage Digital, Coinrise reported. This liquidity strategy mirrors successful Bitcoin and Ethereum ETF models, potentially attracting mainstream investors seeking regulated access, BitcoinWorld reported.

The filing coincides with a surge in XRP-related ETF activity. Franklin Templeton, Bitwise, and Canary Capital have also submitted proposals, with the latter aiming for a November 13 launch after removing a "delaying amendment," BitcoinWorld notes. Canary's CEO, Steven McClurg, highlighted the 20-day automatic approval window as a key advantage, a strategy echoed by 21Shares, Coinobriefing reported. Meanwhile, WisdomTree's 20-coin spot ETF, which includes XRP as a 20% component, underscores expanding institutional interest in altcoins, BitcoinWorld notes.

Market reactions have been swift. XRP rose 4.2% in 24 hours to $2.32 amid speculation of approvals, Coinotag reported, while derivatives volumes spiked on major exchanges, Cryptopolitan reported. Analysts like Eric Balchunas of Bloomberg note the filing's significance: "21Shares just dropped an 8(a) for their spot XRP ETF... 20-day clock in effect," Coinrise reported. This procedural efficiency contrasts with past SEC delays, where Bitcoin and Ethereum ETFs faced prolonged reviews, BitcoinWorld noted.

However, challenges remain. The SEC could pause the countdown by requesting revisions, as seen with prior crypto filings, Cryptopolitan reported. Additionally, XRP's legal history—with ongoing disputes over its classification—adds uncertainty, CryptoNinjas reported. Despite this, proponents argue the ETF's passive structure and transparent pricing model meet regulatory standards, potentially setting a precedent for other tokens, Coinotag reports.

The broader implications for XRP are substantial. An approved ETF could boost liquidity, institutional adoption, and price stability, similar to Bitcoin's post-ETF surge, Coinfomania reported. With XRP's market cap at $139 billion, the product might attract investors previously wary of self-custody risks, Cryptopolitan reported. Grayscale's parallel XRP Trust conversion and Teucrium's leveraged XRP ETF further illustrate the asset's growing institutional footprint, Coinobriefing reported.

As the November 27 deadline approaches, the outcome will test the SEC's evolving stance on crypto. If approved, 21Shares' XRP ETF would mark a milestone in mainstream finance's embrace of digital assets, signaling a maturing market where regulation and innovation converge, BitcoinWorld reported.