The Cboe Exchange has approved the 21Shares TOXR Spot XRP ETF, marking a significant milestone for XRP investment products in the U.S. This spot ETF will track a regulated XRP benchmark, enabling direct exposure to XRP prices with institutional-grade security and liquidity support from Ripple’s 100 million XRP contribution.
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Cboe approves 21Shares’ TOXR Spot XRP ETF listing, paving the way for regulated XRP investment in the U.S. market.
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TOXR joins as the fifth U.S. spot XRP ETF amid surging inflows nearing $1 billion from institutional investors.
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XRP spot funds have attracted $954 million in inflows in under a month, with no net outflows recorded, highlighting robust demand.
Discover the Cboe approval of 21Shares TOXR Spot XRP ETF and its impact on crypto investments. Explore growing inflows and Ripple’s liquidity boost—stay ahead in the XRP market today!
What is the 21Shares TOXR Spot XRP ETF?
The 21Shares TOXR Spot XRP ETF is a new exchange-traded fund designed to provide investors with direct exposure to the price of XRP, the native cryptocurrency of the XRP Ledger. Approved by the Cboe Exchange for listing on its BZX platform, the ETF will track the CME CF XRP-Dollar Reference Rate, New York Variant, ensuring a reliable daily benchmark for XRP’s market value. Once all regulatory conditions are met, including final SEC clearance, TOXR will commence trading, offering a regulated vehicle for institutional and retail investors to access XRP without directly holding the asset.
This approval follows multiple updates to the fund’s S-1 registration statement with the U.S. Securities and Exchange Commission (SEC). The ETF’s structure emphasizes transparency and security, with assets held by multiple regulated custodians. Investors can participate through in-kind creations using XRP transfers or cash-based methods, providing flexibility in entering and exiting positions. The annual sponsor fee of 0.3%, paid weekly in XRP, keeps costs competitive for long-term holders.
Ripple Markets has enhanced the ETF’s launch by providing 100 million XRP, valued at approximately $226 million based on current prices, to bolster market liquidity. This strategic infusion aims to minimize price volatility during the fund’s initial trading phases and supports broader adoption of XRP in traditional financial markets.
How Does the Approval Impact the Broader XRP ETF Landscape?
The Cboe’s approval of the 21Shares TOXR Spot XRP ETF solidifies the growing ecosystem of XRP investment products in the United States, now totaling five spot ETFs. This development comes at a time when XRP spot funds are experiencing unprecedented demand, with cumulative inflows reaching $954 million in less than a month. According to data from financial tracking services, these funds have not seen a single day of net outflows, even amid fluctuating market conditions, underscoring strong investor confidence.
Ripple CEO Brad Garlinghouse highlighted this momentum in a recent statement, noting that XRP has emerged as one of the fastest-growing crypto ETFs by asset size. The approval process involved rigorous SEC reviews, including a fifth updated S-1 filing that includes a delaying amendment, suggesting the issuer is awaiting final regulatory green lights before trading begins. This structured approach aligns with SEC guidelines for crypto ETFs, ensuring investor protections while facilitating market access.
Institutional interest in XRP has intensified due to its utility in cross-border payments and the ongoing enhancements to the XRP Ledger. Ripple recently released an update to the ledger, focusing on network stability and integrating features for decentralized finance (DeFi) applications. These upgrades position XRP favorably within the ETF market, where liquidity and technological reliability are paramount. As total assets under management for U.S. XRP spot funds approach $1 billion, TOXR’s entry could accelerate inflows, drawing more capital from pension funds, endowments, and other sophisticated investors seeking diversified crypto exposure.
From an operational standpoint, the ETF’s use of the CME CF benchmark provides a standardized pricing mechanism, reducing discrepancies between the fund’s net asset value and market prices. Custody arrangements with multiple providers further mitigate risks associated with single-point failures, a best practice recommended by regulatory bodies like the SEC. This level of detail demonstrates the maturity of XRP as an asset class, moving beyond speculative trading toward mainstream financial integration.
Frequently Asked Questions
What Makes the 21Shares TOXR Spot XRP ETF Different from Other Crypto Funds?
The 21Shares TOXR Spot XRP ETF stands out due to its tracking of the regulated CME CF XRP-Dollar Reference Rate and its flexible creation-redemption mechanisms, including both in-kind XRP transfers and cash options. With a low 0.3% annual fee and liquidity support from 100 million XRP provided by Ripple Markets, it offers cost-effective, secure access to XRP for U.S. investors. This structure addresses common concerns around custody and volatility in crypto ETFs.
Will the TOXR ETF Launch Affect XRP’s Market Price and Liquidity?
The TOXR ETF’s potential launch is expected to enhance XRP’s liquidity by attracting institutional capital, similar to how other spot ETFs have stabilized underlying assets. Ripple’s 100 million XRP infusion directly supports this by providing immediate market depth. While short-term price impacts are unpredictable, the absence of outflows in existing XRP funds indicates sustained demand that could positively influence trading volumes and price discovery.
Key Takeaways
- Cboe Approval Milestone: The listing of the 21Shares TOXR Spot XRP ETF on the BZX Exchange represents a key regulatory win, enabling regulated XRP exposure for U.S. investors.
- Robust Inflows Growth: XRP spot funds have amassed $954 million in inflows with zero net outflows, nearing $1 billion in assets and signaling strong institutional appetite.
- Liquidity and Innovation Boost: Ripple’s 100 million XRP contribution and ledger updates prepare the ecosystem for DeFi expansion, urging investors to monitor upcoming trading launches.
Conclusion
The approval of the 21Shares TOXR Spot XRP ETF by the Cboe Exchange underscores the accelerating integration of XRP into traditional finance, driven by regulatory progress and institutional demand. As U.S. XRP spot funds approach $1 billion in inflows, this fifth ETF enhances accessibility and liquidity, complemented by Ripple’s strategic contributions and ledger improvements. Investors should watch for final SEC approvals, positioning XRP for continued growth in the evolving crypto landscape.
Source: https://en.coinotag.com/cboe-approves-21shares-spot-xrp-etf-as-u-s-funds-near-1b-inflows
