In a significant development, the Cboe has granted approval for 21Shares” planned XRP exchange-traded fund (ETF), designated as TOXR. This marks the fifth ETF in the United States focused on XRP, reflecting an increasing appetite from institutional investors for regulated exposure to the cryptocurrency.
The TOXR fund aims to track the CME CF XRP Dollar Reference Rate, providing a means for traders and investors to monitor XRP”s performance through a regulated investment vehicle. The fund is set to charge an annual sponsor fee of 0.3%, calculated daily and settled weekly in XRP, which aligns the fund”s financial operations with on-chain flows.
Liquidity for the TOXR fund is bolstered by an initial supply of 100 million XRP, approximately valued at $226 million. This ensures a robust pool of assets for the fund”s creation and redemption processes, which can be executed through direct XRP transactions or cash-based methods, depending on participant preferences.
Even prior to its launch, existing U.S. XRP ETFs have demonstrated impressive performance, amassing combined inflows nearing $954 million without a single day of net outflows. Ripple”s CEO, Brad Garlinghouse, has highlighted this trend as evidence that XRP is rapidly gaining traction as the fastest expanding crypto ETF category in the U.S., outpacing even Ethereum.
This surge in interest comes on the heels of Ripple”s recent upgrades to the XRP Ledger, aimed at enhancing the network”s capabilities and facilitating advanced decentralized finance (DeFi) applications. As institutional players continue to explore the landscape of cryptocurrency investments, the introduction of TOXR is poised to further diversify the options available for regulated XRP exposure.
