21Shares Submits Application for XRP ETF as Ripple Prepares for Biggest XRP Sell-Off in 7 Years

21Shares and Bitwise have recently submitted applications for exchange-traded funds (ETFs) related to XRP, amidst Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) over the classification of XRP as a security. Ripple’s decision to sell 470 million XRP tokens has sparked significant turbulence in the market.

The move by 21Shares and Bitwise to file for XRP ETFs comes at a crucial juncture for Ripple, as the company continues to challenge the SEC’s allegations that XRP is a security. The SEC lawsuit has had a profound impact on Ripple and the broader cryptocurrency market, with the outcome of the case likely to have far-reaching implications for the regulation of digital assets in the United States.

Ripple’s recent sale of 470 million XRP tokens has further exacerbated the uncertainty surrounding the cryptocurrency. The significant influx of XRP into the market has led to heightened volatility and raised concerns among investors about the future trajectory of the digital asset.

The filing of applications for XRP ETFs by 21Shares and Bitwise signals growing interest in XRP as an investment vehicle, despite the regulatory challenges facing Ripple. ETFs offer investors a convenient way to gain exposure to XRP without having to directly hold the underlying asset, potentially attracting a broader range of market participants to the cryptocurrency.

The ongoing legal battle between Ripple and the SEC underscores the regulatory uncertainties that continue to plague the cryptocurrency industry. The outcome of the case is likely to set a precedent for how digital assets are classified and regulated in the United States, with implications for the broader crypto market.

In conclusion, the recent developments surrounding 21Shares and Bitwise’s applications for XRP ETFs, coupled with Ripple’s sale of 470 million XRP tokens, highlight the complex and evolving nature of the cryptocurrency landscape. As Ripple navigates its legal challenges with the SEC, the market is closely watching for any potential impact on XRP and the wider digital asset ecosystem.