21Shares submitted a critical amendment for its proposed spot XRP exchange-traded fund, initiating a 20-day Securities and Exchange Commission review period that could result in automatic approval by late November if regulators remain silent. The XRP price jumped 5% to $2.32 within an hour of the filing, as traders positioned for what the cryptocurrency community has termed a potential "god candle" — market parlance for a massive upward price movement triggered by a significant catalyst.
What to Know:
- 21Shares filed Amendment No. 3 to Form S-1 under Section 8(a) of the Securities Act of 1933, setting November 27 as the potential automatic launch date without explicit SEC intervention.
- The filing follows similar regulatory adjustments by Franklin Templeton and Grayscale Investments, suggesting coordinated institutional preparation for a November rollout.
- Approval would mark the first time XRP joins Bitcoin and Ethereum in the spot ETF market, fundamentally altering institutional access to the token.
Amendment Triggers Automatic Approval Pathway
The filing represents a strategic regulatory maneuver designed to circumvent traditional approval delays. ETF analyst Eric Balchunas confirmed the submission on X, noting the Section 8(a) provision allows the fund to proceed unless the SEC explicitly objects within the designated window.
Market expert Scott Melker highlighted the timeline implications. "It could automatically go live around November 27 if the SEC does not act," Melker stated, referring to the conclusion of the 20-day review period.
The immediate market response reflected trader expectations that regulators may not challenge the application.
Trading volume spiked alongside the price movement, with community members interpreting the regulatory silence as tacit approval.
Pro-XRP community member Diana characterized the development as "a countdown to SEC review," predicting a substantial price surge within 30 days. Her reference to a "god candle" invoked memories of July 2023, when Judge Analisa Torres issued a partial ruling favoring Ripple in its legal battle with the SEC. That decision sent XRP prices up 70% in a matter of hours, creating one of the most dramatic single-day moves in the token's history.
Coordinated Institutional Push Accelerates Ahead of November
The 21Shares amendment follows closely behind regulatory adjustments from multiple institutional players, suggesting industry-wide preparation for imminent approvals. Franklin Templeton removed language from its S-1 registration statement that previously required explicit SEC clearance before launch.
The deletion of that same Section 8(a) clause has been interpreted by market analysts as a signal that Franklin Templeton expects approval. Such amendments typically occur when issuers gain confidence in regulatory acceptance.
Grayscale Investments filed its second amendment for its proposed XRP Trust conversion, designating key executives and legal counsel in preparation for launch.
These administrative steps generally appear in the final stages before an ETF begins trading. Canary Capital is targeting November 13 for its own XRP ETF debut, pending final clearance from Nasdaq.
The convergence of multiple filings around similar timelines indicates institutional coordination rarely seen outside major product launches. If one or more applications succeed this month, XRP would become only the third cryptocurrency to trade in spot ETF form in U.S. markets, following Bitcoin and Ethereum.
Understanding Exchange-Traded Funds and Market Terminology
Exchange-traded funds represent investment vehicles that track the price of underlying assets while trading on traditional stock exchanges. Spot ETFs hold the actual asset rather than derivative contracts, providing direct exposure to cryptocurrency prices through regulated financial products. This structure allows institutional investors and retirement accounts to gain cryptocurrency exposure without navigating digital wallets or exchange custody concerns.
The term "god candle" originates from technical analysis communities and describes a single candlestick on a price chart showing extreme upward movement in a compressed timeframe.
These formations typically occur when major news catalysts trigger cascading buy orders, overwhelming available sell-side liquidity. The July 2023 XRP move following the Torres ruling exemplifies this pattern, with prices rising from approximately $0.47 to $0.80 in hours.
Closing Thoughts
The synchronized regulatory filings from multiple institutions suggest November could mark a watershed moment for XRP's integration into traditional finance. Whether the SEC permits automatic approval or intervenes before the deadline will determine both the immediate price trajectory and the broader precedent for alternative cryptocurrency ETF applications beyond Bitcoin and Ethereum.