21Shares Spot XRP ETF Goes Live in U.S. With $226 Million Seed

The U.S. market for spot XRP exchange-traded funds has entered a new phase as 21Shares launched its spot XRP ETF, which trades under the ticker TOXR on the Cboe BZX Exchange. The product began trading with a $226 million seed allocation, bringing XRP exposure into the regulated U.S. ETF market under the oversight of the Securities and Exchange Commission.

The launch matters because a spot XRP ETF expands access through a traditional exchange-traded structure. Investors can gain exposure to XRP without directly holding the token or using crypto exchanges. For markets, TOXR offers a real-world view of how spot crypto ETFs function after approval. 

SEC Review and Approval of the TOXR ETF

Before TOXR began trading, the U.S. Securities and Exchange Commission reviewed the ETF under existing securities law standards that govern exchange-traded products. That review focused on the fund’s structure rather than the investment merits of XRP itself.

Key areas of SEC review included disclosure of risks, custody arrangements for holding XRP, pricing benchmarks used to value the fund, and exchange surveillance designed to monitor trading activity. SEC also evaluated whether the ETF’s creation and redemption process aligned with established market practices.

Approval allowed TOXR to trade on a U.S. exchange, but it did not represent an endorsement of XRP or a judgment on its volatility. Instead, it confirmed that the ETF met regulatory requirements for transparency, custody, and market oversight.

The Structure Behind 21Shares’ XRP ETF 

TOXR is structured to provide spot exposure to XRP by holding the underlying asset in custody and issuing ETF shares that trade intraday on a U.S. exchange. Unlike futures-based products, the fund’s performance is directly linked to XRP’s spot price, adjusted for fees and operating costs.

The ETF began trading after completing the required registration and exchange-listing steps overseen by the U.S. Securities and Exchange Commission. That process focused on disclosure standards, custody arrangements, and market structure, rather than any assessment of XRP’s investment merits.

21Shares brings prior experience to the U.S. market, having issued and managed crypto exchange-traded products in other jurisdictions using similar custodial and index-linked frameworks.

What a Spot XRP ETF Means for XRP Trading?

A spot XRP ETF functions through a familiar creation-and-redemption mechanism. Authorized participants would deliver XRP to the fund in exchange for ETF shares, or redeem shares for XRP, aligning the ETF’s market price with the underlying asset.

This structure can influence markets in several ways:

• Liquidity channels: ETF activity can concentrate liquidity during U.S. trading hours, even if XRP trades globally around the clock.

• Access effects: Investors who do not hold digital assets directly can gain exposure to XRP through standard brokerage accounts.

• Market plumbing: Custody arrangements, pricing sources, and authorized participants shape how efficiently flows translate into XRP transactions.

At the same time, the presence of an ETF does not alter XRP’s underlying supply or its global trading venues. The ETF becomes an additional access point rather than a dominant force in price formation.

Key Features of the TOXR ETF

TOXR entered the market with defined structural characteristics that matter more than short-term performance at this stage. As a newly launched spot XRP ETF, available data reflects its setup, costs, and early trading conditions rather than long-term investor behavior.

• Assets under management: The fund launched with a seed allocation of roughly 100 million XRP, valued at about $226 million at inception, providing immediate capacity for trading and share creation.

• Fee structure: TOXR charges a sponsor fee of approximately 0.30%, which is paid from fund assets.

• Listing venue: Shares trade on the Cboe BZX Exchange, offering intraday liquidity and standard ETF disclosure.

• Benchmark: The ETF tracks a U.S. dollar XRP reference rate designed to reflect spot-market pricing.

• Exposure structure: The fund holds XRP directly in custody, with creations and redemptions available on an in-kind or cash basis.

• Trading activity: Early volumes reflect launch-period dynamics and may not yet indicate long-term liquidity patterns.

XRP Price Action After TOXR’s Launch

Since TOXR began trading, XRP price prediction has reflected the addition of a new, regulated source of demand rather than a sharp change in market direction. XRP has recently traded near the $2 level, fluctuating within a relatively tight range of roughly 5–8% since the ETF’s launch. During U.S. trading hours, price moves have appeared steadier, coinciding with periods of higher ETF-related activity.

TOXR influences the market through its creation process, which requires authorized participants to deliver XRP when new ETF shares are issued. With an initial seed of about 100 million XRP, valued near $226 million at launch, the fund entered the market with immediate scale. That structure has supported liquidity and narrower spreads during active trading windows, particularly during creation periods.

Still, TOXR does not set XRP’s price. XRP regularly posts billions of dollars in daily global trading volume, and ETF flows represent a small share of that activity. Offshore trading, derivatives positioning, and broader crypto market trends continue to play a larger role. In general, TOXR has added structure and access, not price certainty.

What Comes Next for TOXR and the Spot XRP ETFs?

With TOXR now trading, focus is shifting from the mechanics of its launch to how the fund develops over time. Investors, issuers, and regulators will be watching to see whether early activity translates into sustained use in the U.S. ETF market.

Key areas to monitor include:

• Sustained inflows: Whether TOXR attracts assets beyond its initial seed, signaling continued investor demand rather than launch-driven activity.

• Trading behavior: How volumes, bid-ask spreads, and creation activity evolve as the ETF trades through different market conditions.

• Competition: Whether other issuers seek approval for spot XRP ETFs, potentially affecting fees and liquidity.

• Regulatory oversight: How TOXR’s operation as a live product influences the SEC’s approach to future crypto ETF reviews.

• Operational standards: Any changes in disclosure rules, custody practices, or market surveillance requirements.

Together, these factors will shape TOXR’s role in the ETF market as trading continues beyond its initial debut.

Zero Knowledge Proof Changes How Crypto Networks Launch

As crypto ETFs bring digital assets into traditional markets, a different kind of evolution is unfolding in how new networks launch. Instead of fixed-price presales, private allocations, or venture-led rounds, Zero Knowledge Proof (ZKP) uses a daily on-chain auction to distribute its native token and establish value in real time.

The ZKP presale runs in rolling 24-hour auction windows. Each day, a fixed allocation of ZKP tokens is distributed to participants in proportion to their share of total contributions. There is no preset price, no early access advantage, and no private tiering. The clearing price is determined entirely by demand during that day’s auction, and the process resets every 24 hours.

This model replaces traditional launch mechanics with a system that is transparent and continuous. Every contribution is recorded on-chain, and allocations are settled immediately after each auction closes.