21Shares Set to Launch XRP ETF on Cboe BZX Exchange Under TOXR Ticker

TLDR

Table of Contents

21Shares XRP ETF to list on Cboe BZX Exchange under ticker TOXR.
The ETF tracks XRP spot prices through CME CF XRP-Dollar Reference Rate.
Coinbase Custody, Anchorage Digital, and BitGo to serve as custodians.
Authorized participants will be able to redeem and create ETF shares in XRP or cash.

21Shares is set to launch its long-awaited XRP ETF under the ticker symbol “TOXR” on the Cboe BZX Exchange. The new ETF aims to provide investors with direct exposure to XRP, tracking its spot price via the CME CF XRP-Dollar Reference Rate. With major custodians like Coinbase Custody, Anchorage Digital, and BitGo Trust handling its assets, the ETF offers a secure and straightforward way to invest in the cryptocurrency.

21Shares Gears Up to Launch its XRP ETF (TOXR)

21Shares, a leading issuer of cryptocurrency exchange-traded products, is preparing for the launch of its XRP exchange-traded fund (ETF) on the Cboe BZX Exchange. This new fund, which will be listed under the ticker symbol “TOXR,” aims to offer investors exposure to XRP, one of the largest and most recognized cryptocurrencies in the market. The 21Shares XRP ETF will track the spot price of XRP through the CME CF XRP-Dollar Reference Rate, a key benchmark that aggregates XRP trade data from major exchanges.

The ETF is designed to offer a simple and transparent way for investors to gain exposure to XRP without needing to directly hold the cryptocurrency. The 21Shares XRP ETF is structured as a passive investment vehicle, meaning that it will not engage in speculative trading or leverage strategies. The trust will only acquire XRP for the purpose of matching the performance of the benchmark, with the goal of tracking XRP’s price movements in U.S. dollars.

XRP Custodians and Trust Structure

The 21Shares XRP ETF will operate with the involvement of several key service providers. Coinbase Custody, Anchorage Digital Bank, and BitGo Trust will serve as the custodians of the XRP held by the trust. These firms will be responsible for securely holding the digital assets on behalf of the trust, ensuring the safety and integrity of the ETF’s holdings.

BNY Mellon will also play a critical role, acting as the cash custodian, administrator, and transfer agent for the ETF. Foreside Global Services has been appointed as the marketing agent for the product, supporting the promotional and investor engagement aspects of the ETF’s launch. These service providers will work together to ensure that the ETF operates smoothly and in compliance with regulatory requirements.

Creation and Redemption Process

Investors seeking to participate in the 21Shares XRP ETF will have the option to purchase shares through authorized participants. These participants will be able to create new shares by delivering XRP to the trust or by depositing cash, which will then be used to purchase XRP for the trust’s holdings. This mechanism allows for the creation and redemption of shares in a manner that ensures the ETF’s price remains closely tied to the value of the underlying XRP assets.

When redeeming shares, authorized participants may receive XRP or cash, depending on the method of redemption. If cash is involved, the ETF will liquidate the XRP at the current market price and settle the transaction in cash. Any transaction fees, slippage, or other trading costs incurred during this process will be the responsibility of the authorized participant and not the trust.

Seed Creation and Initial Launch

As part of the initial launch, 21Shares US LLC, acting as the sponsor of the ETF, plans to purchase an initial seed creation basket of 20,000 shares at a price of $25.00 per share. The proceeds from this purchase, estimated to be around $500,000, will be used to acquire XRP for the trust. This initial purchase is essential for establishing the trust’s holdings and ensuring liquidity for the ETF upon its launch.

The seed creation process is typically conducted by the sponsor before the official listing of the ETF on the exchange. Once the shares are listed, the seed investor may redeem or sell its shares on the open market, but any resale will be done in compliance with the applicable regulations, and the trust itself will not receive any proceeds from these transactions.