- 21Shares files for a spot XRP ETF under Section 8(a), initiating the 20-day auto-effectiveness period.
- The XRP price shows a potential rebound within the formation of a rising channel pattern.
- Open interest tied to XRP futures records a 22% decline this week, indicating the declining speculator force in the derivatives market.
XRP, the native cryptocurrency of the XRP Ledger, jumped 4.26% during Friday’s U.S. market hours. The uptick came as the broader crypto market witnessed a slowdown in correction momentum as Bitcoin stabilized above $100,000. However, analysts started speculating about a bullish turnaround in XRP as several asset management companies, including 21 Shares, updated their application for an XRP ETF under Section 8(a). Here’s what it means.
21Shares Triggers 20-Day Countdown for Spot XRP ETF Launch
21Shares joins a list of asset managers seeking a spot XRP exchange-traded fund (ETF), filing under Section 8(a) of the Securities Act so that the registration will automatically go into effect after 20 days unless the U.S. Securities and Exchange Commission (SEC) intervenes. The application, filed on Friday, is the latest of several auto-effective applications that have been filed during the government shutdown, when regulators are not working at full capacity.
This procedural pathway allows issuers to advance registration timelines even if formal reviews are delayed. However, the upshot still hinges upon developments in Washington. If the government reopens, the SEC can expedite reviews if there are no other issues, although further comments from the agency could push the process past the statutory 20-day window.
The new filing from 21Shares comes after a number of moves from competitors in the same product category. Last week, Canary Funds filed an amended S-1 for a similar spot XRP ETF, devoid of the delaying amendment that would set its own deadline for automatic approval.
Around the same time, Bitwise filed another amendment to its XRP ETF prospectus, announcing a 0.34% management fee and listing on the New York Stock Exchange, both moves that are usually considered a final stage before a launch.
Accompanying these filings, the derivatives market witnessed a slowdown in speculative force. According to Coinglass data, XRP’s futures open interest has decreased by 22% from Monday, falling from $4.37 billion to $3.3 billion. This decline indicates cautious behavior from futures traders as broader market uncertainty persists.
XRP Price Holds Key Support Within Channel Pattern
Following the sharp sell-off on Nov. 3, the XRP price stab ilized above the $2 psychological support. A deeper look at the daily chart shows a long-tail rejection candle forming at the aforementioned support, indicating the presence of strong demand pressure.
Interestingly, the short consolidation is positioned above the support trend line of a declining channel pattern. Since mid-July 2025, the exercise has been actively resumed within the two parallel segments of this pattern.
The momentum indicator, RSI (Relative Strength Index), at 42%, accentuates the recuperating bullish momentum in this asset. Amid the formation of this chart setup, the support trendline has proved itself as a high area of interest for bullish reversal.
If history repeats, the eccentric rise could cause another 15% before challenging the overhead trend at $2.67.
A bullish breakout from this pattern is key to resuming the prevailing record trend in Ripple’s crypto.
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