- Cboe approves 21Shares’ TOXR ETF, which will track a regulated XRP benchmark once launched.
- TOXR becomes the fifth U.S. spot XRP ETF as inflows near $1B and institutional demand grows.
- Ripple boosts liquidity with 100M XRP while updated filings move the ETF closer to trading.
The Cboe Exchange has approved the listing of the 21Shares Spot XRP ETF, also known as TOXR, after the issuer made new filings with the US SEC. The fund will begin trading on the Cboe BZX Exchange once all final conditions are met, and it will track a regulated XRP benchmark rate.
New Approval and Structure of the 21Shares XRP Fund
The Cboe confirmed the approval in a filing to the US SEC, and it stated that TOXR will trade on its BZX platform once the issuer completes the remaining steps. The fund will track the CME CF XRP-Dollar Reference Rate, New York Variant, which provides a daily benchmark for XRP prices.
Furthermore, the ETF will charge an annual sponsor fee of 0.3%. This fee will be charged each day and paid each week in XRP. The issuer has also arranged a setup with multiple custodians so that the fund can hold assets under a regulated framework.
Ripple Markets provided 100 million XRP to support the launch. This amount, worth about 226 million dollars at current prices, will help with market liquidity. The ETF will allow both in-kind creations with XRP transfers and cash creations or redemptions, which gives traders more than one method to enter or exit the fund.
Growing XRP ETF Market and Rising Institutional Attention
TOXR becomes the fifth spot XRP ETF in the United States. This approval comes soon after 21Shares updated its S-1 registration for the fifth time. The filing still contains a “delaying amendment,” and the issuer may be waiting for final notice from the SEC before trading starts.
XRP spot funds have drawn strong inflows, and they are close to reaching one billion dollars in assets under management. Recent data shows total inflows of about 954 million dollars in less than a month. Ripple CEO Brad Garlinghouse said in a post that XRP has become one of the fastest-growing crypto ETFs by asset size.
The first four funds have not recorded any day of net outflows. They also gained more inflows this week even as market prices moved. Ripple also released an update to the XRP Ledger to improve network stability and support new features for DeFi activity.
