21Shares, a well-known asset manager, has received automatic approval from the U.S. Securities and Exchange Commission (SEC) to launch its XRP Exchange Traded Funds (ETF).
The new fund is expected to start trading next week on the Cboe BZX Exchange under the ticker symbol “TOXR.” This will happen once the exchange completes the final listing certification.
21Shares XRP ETF Gains SEC Approval and Exchange Listing
The approval comes weeks after 21Shares filed Form 8-A with the SEC. This filing marked the formal start of a 20-day review window regulatory agency, which has now made the ETF automatically effective.
Following the approval news, the Cboe BZX Exchange also confirmed the listing of the 21Shares XRP ETF shares. The 21Shares XRP ETF is poised to track the price of XRP using the CME CF XRP-Dollar Reference Rate as its benchmark.
Many experts believed that 21Shares’ proposed fund likely received faster approval following the SEC’s recent guidance after the government shutdown.
21Shares XRP ETF Secures Custody and Seed Investment
As announced, custody of the XRP ETF will be handled by Coinbase Custody Trust Company, Anchorage Digital Bank, and BitGo Trust Company. BNY Mellon will act as the cash custodian, administrator, and transfer agent, while Foreside Global Services will handle marketing.
The initial seed investor, 21Shares US LLC, will purchase 10,000 shares to start the fund. This helps provide liquidity and support for the ETF when it begins trading.
Furthermore, 21Shares has not yet revealed the management fees or any fee waivers for the ETF. For comparison, other XRP ETFs have already disclosed their fees.
Franklin Templeton’s XRP ETF (XRPZ) has the lowest fee at 0.19%, while Bitwise and Grayscale have set their own management costs.
Notably, 21Shares investment fund has now joined Canary Capital XRP ETF, the first fully spot-based XRP fund in the United States in the market. Experts expect more ETFs to enter the market soon.
XRP Trading Surges Ahead of 21Shares ETF Launch
The announcement has sparked renewed interest in XRP trading. The cryptocurrency rebounded 5% over the past 24 hours after a previous drop of more than 9%. It is currently trading around $2.12, fluctuating between $2.01 and $2.17.
XRP’s trading volume rose by 26% in the same period, indicating higher activity from traders. XRP futures also saw changes in interest. Total futures open interest increased by 0.30% to $3.38 billion.
On the CME, the 4-hour XRP futures open interest rose 0.56%, while Binance recorded a 1.17% decline. The ETF’s launch comes at a time of renewed market interest and increasing trading volumes. This signals optimism among investors and traders in the crypto market.