21Shares Files for XRP ETF Launch as Price Struggles Amid Market Pressure

TLDR

• 21Shares is preparing to launch its XRP ETF (TOXR) after filing an updated prospectus with the SEC.
• The issuer reduced its management fee for the XRP ETF from 0.50% to 0.30% in the latest filing.
• The total assets under management for spot XRP ETFs are approaching $1 billion, with multiple issuers offering fee waivers.
• Franklin Templeton’s XRP ETF has the lowest management fee of 0.19% and the longest fee waiver period.
• The 21Shares XRP ETF aims to track spot XRP prices using the CME CF XRP-Dollar Reference Rate.

21Shares is preparing to launch its XRP ETF, filing with the U.S. Securities and Exchange Commission (SEC) to update its prospectus. The issuer’s latest move signals its readiness to debut the XRP ETF, joining other market players like Grayscale, Bitwise, and Canary. This comes as XRP price continues to face selling pressure, despite increasing investments into XRP ETFs.

The 21Shares filing involves a fifth amendment to its S-1, marking the final revisions before launch. It is speculated that the company is waiting for a CERT filing or SEC approval. The recent filing also updates the management fee, reducing it from 0.50% to 0.30%, but a fee waiver has not been disclosed.

XRP ETFs Attract Strong Investor Interest

XRP ETFs are seeing strong interest, with a total AUM of nearly $1 billion. Bitwise, Franklin Templeton, and Grayscale are among those offering fee waivers to attract investors. Franklin Templeton’s XRP Exchange-Traded Fund (XRPZ) stands out, offering the lowest management fee of 0.19%.

The company’s fee waiver period is also the longest in comparison to other issuers. This strategy has attracted investor interest, helping to boost the overall market for XRP ETFs. As the market grows, many believe this trend will continue with other ETFs like 21Shares entering the field.

XRP Price and Market Dynamics

Despite the influx of funds into XRP ETFs, XRP’s price remains under pressure. At press time, XRP is trading in a narrow range between $2.05 and $2.12. This price movement reflects the subdued market sentiment ahead of the upcoming FOMC meeting.

The 24-hour trading volume has decreased by 8%, signaling a drop in trader interest. Data from CoinGlass shows mixed sentiment in the derivatives market, with XRP futures open interest dropping by nearly 2% in the last 24 hours. However, the 4-hour open interest on XRP futures has seen slight increases across exchanges such as Binance and OKX.

XRP ETF Listing and Custodianship Details

The 21Shares XRP ETF, approved by the CBOE BZX Exchange, will trade under the ticker symbol “TOXR.” However, the ETF listing is still pending. The investment objective is to provide exposure to XRP, tracking spot XRP prices from the CME CF XRP-Dollar Reference Rate.

The ETF will use Coinbase Custody, Anchorage Digital Bank, and BitGo Trust as its custodians. Additionally, BNY will serve as the cash custodian, administrator, and transfer agent of the trust. Foreside Global Services will handle the marketing for the ETF.

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