The fifth XRP ETF is set to start trading after receiving new approval from the Cboe. This will place the fund alongside other ETFs that have recorded over $950 million in inflows in less than four weeks
The Cboe has approved the listing of 21Shares’ upcoming XRP fund, which will trade under the ticker ‘TOXR.’ The approval was revealed in a filing to the SEC. The fund will begin trading once it fulfills the final requirements.
This approval brings the total number of US spot XRP-related funds to five. It follows 21Shares’ fifth update to its S-1 registration earlier this week, marking the final steps before the launch.
Delaying amendment clause suggests SEC approval pending
There exists a delaying amendment clause still present in the filing, which denotes the possibility that 21Shares is awaiting a CERT notice or direct approval by the SEC.
Upon its release, the XRP ETF will track the CME CF XRP-Dollar Reference Rate, New York Variant.
This will give investors exposure to the price performance of XRP without the necessity of owning the token. 21Shares recently gave a nod to the impending launch on X.
The structure of the 21Shares TOXR fund implies an annual sponsor fee of 0.3% to be paid on a daily and weekly basis in XRP, and to increase security and regulatory compliance, 21Shares has adopted a system of using more than one custodian.
The ETF received initial liquidity from Ripple Markets, which invested 100 million XRP and is currently valued at about $226 million. Creation and redemption will occur either through an in-kind XRP transfer or via a cash settlement.
XRP ETF sees nearly $1 billion in inflows
This will be the most recent fund to be introduced after the release of Franklin Templeton’s position on the XRP fund late last month.
In just less than a month, spot XRP ETFs in the US have received close to $1 billion in inflows. Recent figures show that the total inflows have come to approximately $954 million.
In a post on Monday, Ripple CEO Brad Garlinghouse stated that XRP is now the fastest-growing US crypto ETF in terms of AUM. This growth is being fueled by increasing demand in the market for regulated products.
However, XRP spot funds have not experienced any net outflows in the past days. They received around $10 million of new investments just yesterday despite fluctuations in the market.
In other news, Ripple has released a major update on the XRP Ledger, supposedly to enhance the safety of networks and augment its DeFi capabilities.