21Shares Launches XRP ETF

Digital assets management firm 21Shares has launched TOXR, its spot XRP exchange-traded fund (ETF). The firm announced the launch on X, describing it as another W for XRP.

The launch adds to the growing list of ETFs that have XRP as their underlying asset. The new product will be listed on the CBOE.

21Shares says XRP ETF Expand US Customers’ Access to Crypto

The launch of TOXR adds to the array of crypto ETFs that 21Shares has issued both within and outside the US. The company plans to charge a 0.30% fee for the ETF and has adopted a multi-custody approach for the underlying assets.

It utilises notable custodians such as Coinbase, Anchorage, and BitGo. Flow Traders is also serving as the lead market maker for the product, providing liquidity and institutional access.

According to the press release from the firm, TOXR will provide users with the opportunity to gain exposure to XRP through their bank or brokerage. The CEO, Russel Barlow, stated that this is part of the firm’s commitment to provide US investors with access to the leading cryptocurrencies.

Barlow said:

“We play an instrumental role in creating financial products that capture the innovative technologies transforming our industry, and we’ve leveraged our nearly eight years of experience developing, launching and managing crypto exchange-traded products around the world to bring TOXR to the U.S. market.”

The company added that the new product is a response to the demand for diversified crypto exposure from users. 21Shares currently has assets under management (AUM) of around $8 billion with five crypto ETFs now listed in the US.

Meanwhile, the launch of TOXR comes a few months after 21Shares’ acquisition by institution-facing crypto firm FalconX. Many now believe that the deal would benefit the new XRP ETFs, noting FalconX’s distribution networks.

Spot XRP ETFs Continue to Grow While XRP Struggles

Interestingly, 21Shares is late to the XRP ETF game. Spot XRP ETFs from the likes of Canary, Bitwise, Grayscale, and Franklin Templeton are already trading. There are also several leveraged XRP ETFs in the market.

Despite the proliferation of XRP ETFS, the products have been seeing sizable inflows. XRP ETFs collectively now $1.63 billion in AUM, more than Solana‘s $1.56 billion. The products have generated nearly $1 billion in inflows over the past 18 days.

However, the inflows into spot XRP ETFs have not translated into a positive performance for XRP itself. The token is down 2.22% over the past 24 hours, continuing a negative trend that has persisted for weeks. XRP, which was one of the high-flying cryptocurrencies late in 2024, is now down 13% year-to-date.

Meanwhile, more ETFs could still be in the pipeline. Bloomberg ETF expert Eric Balchunas noted that ten XRP ETFs are in the pipeline, with three being spot and seven being derivatives. Only Bitcoin and multi-asset have more active  ETF applications.