While the token’s price continues to face selling pressure, interest in institutional products tied to XRP is accelerating — and 21Shares is pushing toward launch with fresh adjustments to its offering.
Key Developments
- •21Shares has reduced its XRP ETF fee to 0.30% in preparation for its launch.
- •XRP ETFs are approaching $1 billion in assets, influenced by competitive fee structures among issuers.
- •The fund has received approval for listing and is awaiting its first day of trading.
A significant indicator of this shift is a recently amended regulatory filing. Instead of maintaining its initial cost structure, 21Shares has lowered its planned management fee to 0.30%. This reduction brings its offering more in line with competitors like Franklin Templeton, which has been notably aggressive by setting the industry’s lowest fee at approximately 0.19% and offering an extended waiver period to attract early investment. Spot XRP ETFs have collectively amassed nearly $1 billion in assets, a figure largely driven by the launches of products from Franklin Templeton, Bitwise, and Grayscale, all of which have utilized temporary fee waivers to engage institutional investors.
Technical Approval Achieved, Trading Awaits
Despite the intensifying competition regarding fees, 21Shares is still in the pre-launch phase. The product officially became effective last month following an upgrade to its securities registration, granting it regulatory approval for listing. However, the ticker, designated as “TOXR” for trading on CBOE’s BZX platform, has not yet commenced trading.
This means that traders are awaiting a final procedural step, such as a CERT notice or a definitive action from regulators, before shares can be traded.
Infrastructure Readiness
The underlying infrastructure for the fund is already in place. The pricing mechanism will mirror spot market movements, rather than futures exposure, and will base its tracking on the CME CF XRP-Dollar benchmark. Custodial responsibilities are shared among Coinbase Custody, Anchorage Digital Bank, and BitGo Trust to ensure the security of the underlying assets.
Furthermore, BNY Mellon, a prominent entity in fund servicing, is responsible for managing cash flows, transfer records, and overall operations. Foreside Global Services is overseeing distribution and marketing efforts.
Market Growth Amidst XRP Price Pressure
While institutional products are experiencing significant growth, XRP’s market price has not yet reflected the enthusiasm seen in ETF demand, remaining under pressure despite consistent inflows. This divergence illustrates a common pattern: institutional interest in infrastructure can build ahead of a corresponding shift in sentiment in the spot markets.
Currently, 21Shares is on the verge of launching its product, awaiting the final activation of trading amidst an increasingly competitive and fee-conscious ETF market.