Grayscale, Bitwise and many other major asset management companies have just officially re-filed the revised S-1 for the XRP-based spot ETF. According to a source from The Block on August 23, a series of names such as Canary, CoinShares, Franklin, 21Shares and WisdomTree also participated in this update.
The key change in the new documentation is the mechanism for creating and redeeming fund certificates. Instead of being limited to creating and redeeming with cash, funds now add the option to create with XRP or cash, and allow investors to redeem with cash or in-kind. This is considered an important step forward, making ETFs more flexible and closer to the actual needs of the cryptocurrency market.
James Seyffart, an ETF analyst at Bloomberg, said the changes were almost certainly prompted by a response from the U.S. Securities and Exchange Commission (SEC). “This is a positive sign, but not a surprise, as the SEC often requires companies to adjust their fund structures to ensure transparency and compliance,” he said.
The current market context makes this news all the more remarkable. With the approval of a Bitcoin ETF in early 2024, the door is wide open for ETFs tied to leading cryptocurrencies like Ethereum and now XRP . The SEC’s gradual openness to blockchain-based financial products is XEM as a strong boost for the entire market.
Meanwhile, investors are also hoping that these changes will open up new opportunities for XRP – a cryptocurrency that has been embroiled in many legal disputes with the SEC over the years. After Ripple achieved many important victories in its lawsuit with the US regulatory agency, investor confidence in XRP has gradually returned. The fact that many giants such as Grayscale and Bitwise simultaneously filed for XRP spot ETFs has further strengthened the position of this coin in the global market.
