21Shares is set to commence trading its XRP ETF on Monday under the ticker TOXR, coinciding with a significant institutional demand for XRP investment products that has reached $666 million in inflows within a month.
This launch marks the fifth XRP ETF to enter the U.S. market, further solidifying the trend of institutional interest in cryptocurrency-based financial products. The XRP ETF will list on the Cboe BZX Exchange, enhancing the accessibility of XRP to traditional investors.
A regulatory filing confirmed that the U.S. Securities and Exchange Commission (SEC) has granted approval for 21Shares to launch this product. The ETF is designed to track the CME CF XRP-Dollar Reference Rate, allowing investors to gain exposure to XRP prices without holding the actual token.
The approval follows 21Shares” completion of Form 8-A registration, which is pivotal for launching a U.S.-listed ETF. This places 21Shares alongside other notable issuers such as Grayscale and Franklin Templeton, which have also recently introduced XRP ETFs to the market.
Since the launch of these ETFs, the inflows have shown remarkable consistency, with no recorded outflows. Data from SoSoValue indicates that XRP ETFs have accumulated $666 million in net inflows, pushing the total net assets of these funds to $687.81 million, which now represents 0.52% of XRP“s circulating market cap.
The largest inflow day occurred on November 14, coinciding with the launch of Canary”s XRP ETF. Institutional interest continues to rise, evidenced by an additional $22.68 million entering the funds on a recent day.
This trend of increasing institutional participation has led to a notable rise in the amount of XRP held in secure vaults by custodians, consequently reducing the liquid supply available on public exchanges.
In a related development, CoinShares has decided to withdraw its application for an XRP ETF in the U.S., following multiple amendments to its filing throughout August and October. The firm did not disclose specific reasons behind the withdrawal. Industry analysts suggest that CoinShares might be restructuring its business model, which could influence its future plans for launching ETFs.
As 21Shares enters this competitive market, the influx of institutional capital and growing interest in XRP as an investment vehicle indicate a robust future for cryptocurrency ETFs.
