21Shares has filed an updated prospectus for its eagerly anticipated 21Shares XRP ETF (TOXR), pushing the product one step closer to gaining regulatory approval. This development comes at a time of renewed investor interest in crypto-linked exchange-traded products.
Key Details of the 21Shares XRP ETF Filing
The 21Shares XRP ETF has submitted its fifth amendment to its S-1 filing, bringing it closer to a potential launch this week. In a move to remain competitive, 21Shares has lowered its management fee from 0.50% to 0.30%. The issuer is seeding the product with 20,000 shares, each priced at $25.
Regulatory Status and Investment Mechanism
The ETF became "auto-effective" last month and is currently awaiting a CERT filing before its official launch. The primary objective of the ETF is to provide investors with a regulated avenue to gain exposure to XRP, bypassing the complexities of managing cryptocurrency wallets. Investors will be able to purchase shares through traditional brokerage accounts. The ETF is designed to track spot XRP prices using the CME CF XRP-Dollar Reference Rate.
Custodianship and Supporting Services
For custodianship, 21Shares has engaged Coinbase Custody, Anchorage Digital Bank, and BitGo Trust. BNY Mellon will serve as the cash custodian, administrator, and transfer agent. Foreside Global Services is acting as the marketing agent for the ETF.
According to the December 8 filing, the fund will hold actual XRP, offering investors direct exposure to the cryptocurrency asset. This structure allows investors to trade XRP through their conventional brokerage accounts.
Market Context and Investor Interest
21Shares is initiating the ETF with 20,000 shares valued at $25 each. Globally, XRP ETFs are experiencing significant demand, marked by 16 consecutive days of net inflows. The total assets under management for XRP ETFs currently stand at approximately $923 million.
On a recent Monday, XRP ETFs collectively attracted $38 million in net inflows, with Franklin Templeton’s XRP ETF (ARCA: XRPZ) accounting for $31.7 million of that amount. In comparison, Bitcoin ETFs saw net outflows of $60 million, while Ethereum ETFs gained $35.49 million. Solana ETFs registered more modest net inflows of $1.18 million.