21Shares’ XRP ETF Moves One Step Closer to Launch

21Shares is getting closer to launching its XRP ETF (TOXR). The company filed its fifth update to the S-1 registration, moving the ETF closer to regulatory approval. The product will let investors trade XRP through regular brokerage accounts in a regulated way.

Latest 21Shares’ XRP ETF Filing

The latest filing introduces a small but notable adjustment: the management fee has been lowered from 0.50% to 0.30%. It may seem minor, but it reflects growing competition in the crypto ETF market. Lower fees could attract retail investors who want exposure to XRP without dealing with crypto directly.

21Shares made the ETF “auto-effective” last month, yet a CERT filing is still required for the official launch. Once approved, the ETF will hold actual XRP, letting investors track spot prices through the CME CF XRP-Dollar Reference Rate. Unlike equity-based crypto ETFs that mix assets or derivatives, TOXR gives direct ownership of XRP, similar to buying the cryptocurrency itself, but through a normal brokerage account.

Fund seeding has already started, with 20,000 shares priced at $25 each. While this initial allocation is notable, securing a large share would require a significant investment, roughly $500,000 for major investors.

Security and Operational Setup

Custody is a crucial factor for any crypto ETF, and 21Shares has implemented a layered solution. Digital assets are managed by Coinbase Custody, Anchorage Digital Bank, and BitGo Trust, while BNY Mellon oversees the cash side as custodian, administrator, and transfer agent. Foreside Global Services handles marketing, giving the fund support in both operations and promotion.

This setup lowers risk and reassures investors worried about security. At a time when breaches can undermine confidence, having trusted institutions manage both digital and cash assets signals reliability.

Market Context and Investor Sentiment

At the same time, interest in XRP ETFs is rising. XRP-focused ETFs have seen 16 days of net inflows, with total assets close to $923 million. Monday alone added $38 million, with Franklin Templeton’s XRP ETF bringing in $31.7 million. Bitcoin ETFs lost $60 million over the same period, Ethereum ETFs gained $35.49 million, and Solana ETFs had only small inflows.

This trend shows investors are looking for XRP exposure through regulated products. It points to both confidence in the token and a preference for safer investment options. TOXR could offer a way for traditional investors to join in without using crypto exchanges.

Key Takeaways for Investors

The 21Shares XRP ETF is now closer tooffering investors regulated access to XRP. With lower management fees, trusted custodians, and direct access to the crypto, TOXR makes it easier to connect traditional finance with digital assets.

As interest in XRP ETFs grows, TOXR could attract both retail and institutional investors. While it still needs regulatory approval, this ETF may change how XRP is accessed in mainstream finance.