21Shares is set to launch its XRP ETF on the Cboe BZX Exchange this coming Monday, marking a significant milestone in the cryptocurrency investment landscape. The ETF, which will trade under the ticker symbol TOXR, has already garnered remarkable institutional interest, with a total of $666 million in inflows accumulated over the past month.
This development comes after the U.S. Securities and Exchange Commission (SEC) granted regulatory approval for 21Shares to initiate its XRP ETF. The product is designed to track the CME CF XRP-Dollar Reference Rate, providing investors with a means to gain exposure to the price movements of XRP without needing to directly hold the cryptocurrency.
The launch of the TOXR ETF adds to the growing list of XRP-based investment products in the U.S., making 21Shares the fifth issuer to enter this competitive market. Other notable players, including Grayscale and Franklin Templeton, have recently introduced their own XRP ETFs, which have also seen significant trading volumes on their debut days.
Strong Institutional Demand
According to data from SoSoValue, total net inflows into XRP ETFs have reached an impressive $666 million since their inception. Currently, the net assets of these funds stand at $687.81 million, representing approximately 0.52% of XRP”s circulating market capitalization. Notably, these inflows have remained steady, with no recorded outflows during this period. The most substantial inflow occurred on November 14, coinciding with the launch of another XRP product by Canary.
Recently, the market has witnessed an influx of $22.68 million entering the funds in a single day, underscoring the sustained institutional appetite for regulated investment vehicles linked to XRP. As custodians accumulate more XRP in secure storage, the liquid supply available on public exchanges is diminishing, further highlighting the increasing interest from institutional investors.
Market Dynamics and Competitors
Although the market for XRP ETFs is becoming more saturated, the introduction of TOXR is poised to capitalize on the rising demand for crypto-based financial products. The competitive landscape indicates robust interest from institutional investors seeking regulated access to cryptocurrencies.
In related news, CoinShares has recently withdrawn its filing for an XRP ETF in the U.S., having made several amendments to its application over the past months. The exact reasoning behind this decision remains unclear, but industry analysts suggest it may be linked to potential restructuring within the firm. Despite this withdrawal, the market for XRP ETFs continues to expand, with 21Shares” entry reinforcing investor access to this digital asset through traditional investment channels.
The ongoing inflows into XRP ETFs demonstrate a growing confidence in XRP as a viable asset class, as investor interest continues to build in the face of regulatory advancements and product availability.
