21Shares has secured automatic approval for its XRP ETF after filing Form 8-A with the US Securities and Exchange Commission (SEC).
The approval comes as the company prepares to launch the ETF on the Cboe BXZ Exchange under the ticker symbol “TOXR” next week.
The filing, submitted on November 7, gained accelerated approval under the SEC’s post-government shutdown guidelines.
The 21Shares XRP ETF is now set to begin trading, pending certification from the Cboe BZX Exchange.
21Shares XRP ETF custodians and initial investment
The 21Shares XRP ETF intends to give exposure to XRP, and it will track the spot price of XRP pegged on the CME CF XRP-Dollar Reference Rate pricing benchmark.
Coinbase Custody, Anchorage Digital Bank, and BitGo Trust will act as custodians of the crypto assets, which will support the ETF.
Moreover, the ETF will have BNY Mellon as its cash custodian, administrator, and transfer agent of the trust. The new investment product has been assigned to Foreside Global Services, which shall undertake the marketing.
An initial basket of 10,000 shares that will be sold to start off the ETF will be purchased by 21Shares US LLC, which will be the first seed investor.
Although the management fee for the TOXR ETF has not yet been disclosed, financial institutions like Franklin Templeton and Grayscale — both anticipating the launch of their own XRP ETFs — have already announced theirs. So far, Franklin Templeton’s XRPZ ETF offers the lowest management fee at 0.19%.
As the race for XRP ETFs intensifies following Canary Capital’s XRPC debut, Bitwise has also launched its XRP ETF on the NYSE Arca Exchange under the new ticker XRP.
XRP trading volume spikes after ETF acceptance
At the time of writing, the XRP price has fallen by 1.32% in the last 24 hours and is currently trading at $2.12. Nonetheless, the trading volume has soared by 28.38%. This means more activities in the market due to the acceptance of diverse XRP-based ETFs.
According to CoinGlass data, XRP futures open interest fell by 1.12%, which is currently at a level of $3.73 billion. The XRP OI-weighted fund rate stands at -0.0006%.
But although the open interest in the XRP futures is decreasing, the surge in spot trading volume indicates that the ETF hype is prompting a renewed interest in XRP.