Cboe Greenlights Fifth XRP ETF Amid Rising Institutional Interest – Crypto Economy

Institutional appetite for XRP is accelerating, with U.S.-listed XRP exchange-traded funds attracting roughly $954 million to date without a single net outflow day. In a notable development, Cboe has approved 21Shares’ spot XRP ETF for listing once final procedural steps are completed, setting the stage for a fifth U.S. XRP ETF to join the market.

Cboe Clears Path for 21Shares’ TOXR

The upcoming 21Shares fund is slated to trade on Cboe under the ticker TOXR. Its greenlight arrived quietly through formal documentation indicating eligibility to list, signaling that demand appears strong enough to support another entrant alongside recently launched XRP products. The expansion underscores the rapid maturation of regulated XRP exposure as more issuers and institutional allocators step in.

How the Fund Is Structured

TOXR is designed to track XRP’s performance using the CME CF XRP Dollar Reference Rate, a benchmark familiar to institutional participants. By providing spot exposure through a regulated wrapper, the fund aims to remove the complexities of direct token custody and operational security for investors who prefer traditional market rails.

The ETF carries a 0.30% annual sponsor fee, which accrues daily and is settled weekly in XRP. This alignment with on-chain settlement mechanics is intended to streamline operations and connect fund flows to the underlying asset’s ecosystem.

Liquidity and Market Plumbing

Liquidity provisioning has been addressed from the outset. Ripple Markets has seeded the product with 100 million XRP—worth about $226 million at the time of disclosure—creating a sizable base for creations and redemptions. Market participants will have the flexibility to transact either in-kind (via XRP) or through cash-based mechanisms, depending on their operational preferences.

The listing approval follows multiple amendments to 21Shares’ S-1, reflecting iterative refinements as the issuer prepared the product for regulatory clearance and market readiness.

Demand Signals: A Crowded Field with Strong Inflows

Even before TOXR begins trading, the U.S. XRP ETF segment has posted compelling numbers. Combined inflows of approximately $954 million have come without any recorded net outflow days so far. Ripple’s leadership has highlighted the pace of asset growth, pointing to XRP as one of the fastest-growing U.S. crypto ETF categories by assets since Ethereum captured similar institutional momentum.

Analysts attribute the surge to several factors: the availability of a regulated vehicle that removes custody hurdles, competitive fee structures, and improving market infrastructure for digital assets. The momentum also coincides with Ripple’s ongoing XRP Ledger upgrades aimed at enhancing network performance and enabling more advanced DeFi capabilities.

Implications for Investors and the Market

• Broader Access: Another spot XRP ETF expands the menu of regulated options for institutions and advisors who prefer exchange-traded exposure over direct token handling.
• Liquidity and Price Discovery: Larger seeded inventory and multiple creation/redemption pathways can support tighter spreads and more efficient price discovery as trading volumes scale.
• Competitive Pressure on Fees: As more issuers enter, fee competition could intensify, benefiting cost-sensitive investors and potentially accelerating adoption.
• Operational Flexibility: The ability to settle sponsor fees in XRP and process in-kind flows may streamline market operations for sophisticated participants.

What to Watch Next

With Cboe’s approval in place, market watchers will look for the final procedural steps that activate trading in TOXR and the early trading metrics that follow—volume, spreads, and creation/redemption activity. Flows into existing products suggest a constructive backdrop, but sustained interest will depend on broader market conditions, ongoing network development, and how effectively issuers can maintain tight tracking and liquidity.

If the current trajectory holds, the addition of a fifth XRP ETF could deepen the segment’s footprint in U.S. markets, further normalizing digital asset exposure within traditional portfolios and reinforcing XRP’s role in the expanding crypto ETF landscape.