#What is the 21Shares XRP ETF?
The 21Shares XRP ETF recently gained approval from the Cboe BZX Exchange, indicating that this financial product is ready to launch. It aims to track the performance of XRP, the fourth-largest cryptocurrency by market capitalization. Investors can expect to buy shares under the ticker TOXR. The ETF is designed to provide an easy way for investors to gain exposure to XRP without directly holding the asset.
#How Does the ETF Work?
This ETF will utilize a structure that allows it to trade shares based on the CME CF XRP-Dollar Reference Rate, specifically the New York variant. This means that it will closely track the movements of XRP in the market, offering investors real-time exposure to the cryptocurrency's performance. The management fee is fixed at 0.3% annually, which will be calculated on a daily basis and paid weekly in XRP. This makes it a relatively low-cost option for those looking to invest in this digital asset.
#Who is Involved in the XRP ETF?
Currently, Ripple Markets holds a significant stake in the XRP trust, having secured 10 million shares with a purchase price equivalent to 100 million XRP, totaling approximately $226 million. This establishes a strong foundational investor in the ETF, which could enhance its credibility among retail investors looking to participate in the growing cryptocurrency market.
#When Will Trading Start?
21Shares has indicated that the trading of its XRP ETF is set to commence soon. This creates anticipation, especially among the dedicated XRP community. The company is rallying potential investors by encouraging them to prepare for the trading phase, signaling readiness for significant market activity.
#What’s Next for XRP Investment Products?
The 21Shares XRP ETF is not the only fund dedicated to XRP. It will enter a competitive landscape that includes various other products from firms such as Canary Capital, Bitwise, Grayscale, and Franklin Templeton, each seeking to capitalize on the growing interest in cryptocurrencies.
Investors should stay informed about these developments as they could present new opportunities in the burgeoning market of cryptocurrencies and ETFs.