21Shares’ XRP ETF: A step closer to launch

21Shares has just filed an updated prospectus for its eagerly anticipated 21Shares XRP ETF (TOXR), pushing the product one step closer to gaining regulatory approval—just in time for a fresh wave of investor interest in crypto-linked exchange-traded products.

For those who’ve been following the saga, the 21Shares XRP ETF just submitted its fifth amendment to its S-1, bringing it one step closer to its potential launch this week.

The issuer also decided to be slightly more wallet-friendly by lowering its management fee from 0.50% to 0.30%—a small but sweet gesture amid fierce competition. However, no word on whether they’ll waive fees entirely just yet.

A quick history lesson

The ETF became “auto-effective” last month, but it’s now waiting on a CERT filing before it can officially launch. The goal? To offer investors a regulated way to gain exposure to XRP while avoiding the labyrinth of crypto wallets.

Instead, investors can buy shares through traditional brokerage accounts, while the ETF tracks spot XRP prices from the CME CF XRP-Dollar Reference Rate. It’s like the crypto equivalent of eating your cake and having it too—just without the risk of losing it in a hardware wallet.

One custodian? Try three.

On the custodianship front, 21Shares has lined up Coinbase Custody, Anchorage Digital Bank, and BitGo Trust. Plus, BNY Mellon will handle the cash side of things, acting as the cash custodian, administrator, and transfer agent.

For those keeping track, Foreside Global Services is the marketing agent.

According to the December 8 filing, the fund will hold actual XRP. That means investors will get direct exposure to the crypto asset. But unlike those thematic crypto equity ETFs that leave you guessing, TOXR lets you trade XRP through your traditional brokerage account.

21Shares is seeding the ETF with 20,000 shares priced at $25 each, so if you’ve been thinking about a slice of XRP, this might be your chance—though you’ll need to fork over around $500,000 for the privilege.

XRP ETFs, globally, are on a roll, with 16 consecutive days of net inflows. The total assets under management? A cool $923 million.

• On Monday, XRP ETFs attracted a whopping $38 million in net inflows. Of that, Franklin Templeton’s XRP ETF (ARCA: XRPZ) snatched up $31.7 million alone.
• Meanwhile, Bitcoin ETFs experienced a not-so-hot $60 million in net outflows;
• Ethereum ETFs gained $35.49 million.
• Solana ETFs are trailing behind, with a modest $1.18 million in net inflows.