Understanding the 21Shares XRP ETF

The 21Shares XRP ETF will trade on the Cboe BZX Exchange, tracking the CME CF XRP-Dollar Reference Rate. According to the SEC filing dated November 28, 2025, this product marks a significant step forward, as it is one of the first European-issued XRP ETFs to dominate the U.S. market. With 21Shares managing over 40 crypto ETPs globally, their expansion across Europe, the Middle East, and Asia is noteworthy.

How the XRP ETF Operates

Similar to spot Bitcoin and Ethereum ETFs, the TOXR fund will hold physical XRP in secure custody, ensuring investor protection through daily creation and redemption baskets that align with XRP’s real-time market price. While the final expense ratio is yet to be disclosed, industry experts predict a competitive range between 0.25% and 0.40%. Anchorage and BitGo, known for their cold storage and multi-signature security, will manage custody.

Impact on XRP Price and Market

Increased interest in XRP ETFs has resulted in $666.61 million in inflows, reflecting the strong demand from institutional investors. This influx has reduced the liquidity of XRP on exchanges, pushing the token’s price up by 12% this week to over $2.19. Analysts anticipate that if current trends continue, XRP could reach between $2.70 and $3.00, especially if Bitcoin surpasses the $100,000 mark.

Why Invest in the 21Shares XRP ETF?

The 21Shares XRP ETF offers a regulated avenue for investors to tap into the XRP market without direct token management. Its strategic design and secure custodianship make it an attractive option for those looking to diversify their crypto portfolio. Additionally, the competitive expense ratio enhances its appeal to cost-conscious investors.

As XRP ETFs gain momentum, experts predict that they could attract upwards of $50 billion, mirroring the success seen with early Solana ETF launches. This could potentially lead to significant upward pressure on XRP’s price, benefiting early adopters of the ETF.

Conclusion

The launch of the 21Shares XRP ETF signifies a pivotal moment in the integration of XRP into mainstream financial markets. As more institutional investors flock to this opportunity, the ETF is poised to drive substantial growth in XRP’s market value. For those looking to invest in XRP without the complexities of direct token holding, the 21Shares XRP ETF represents a promising investment vehicle.

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The firms expressed their apprehensions regarding the SEC’s recent departure from the ‘first-to-file’ approach, where financial products are approved based on the order of their submission. They made these sentiments known in a public letter addressed to SEC Chair Paul Atkins and published on X last Friday.

“The SEC’s deviation from this protocol has undermined the regulatory principles of innovation, fairness, and market competition,” the firms remarked in the letter. They added, “We urge you to promptly restore the Commission’s longstanding first-to-file approval criterion for registration statements. In simple terms, when the Commission shows favoritism, it results in financial loss for ETP sponsors and makes the ETP marketplace less fair.”

Currently, the SEC is considering numerous applications for ETFs, including those tracking SOL, XRP, and DOGE, along with other assets. Many of these proposals were submitted over the past year in response to an expectation that the Trump administration would adopt a more liberal approach.

Under the Biden administration and following a significant court decision, the SEC authorized the listing and trading of spot Bitcoin ETFs and subsequently spot Ethereum ETFs. The firms argue, however, that in an atypical move, the SEC permitted all spot Bitcoin ETF issuers to list their products on the same day—despite receiving proposals for the 11 different funds at different times. They believe that a return to a first-to-file approach is necessary to prevent market concentration and a “competitive imbalance.”

They further wrote, “The diminished incentive for pioneering product development has wider implications. It restricts investor options, weakens market efficiency, and fundamentally undermines the Commission’s objective of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation.”

VanEck’s Head of Digital Assets Research, Matt Sigel, previously disclosed to The Block that the firm was the first to file for a Solana ETF in June 2024, in anticipation that the SEC would adopt a more equitable, time-weighted standard for financial product approvals. The SEC has not yet responded to a request for comment.

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This move is expected to make the shares more affordable and enhance trading efficiency, as stated by 21Shares on June 2. The Bitcoin ETF’s investment strategy, aimed at tracking the Bitcoin price (BTCUSD), will remain constant. The fund’s Bitcoin holdings will stay the same, and it will continue its usual trading. Furthermore, the total net asset value of the fund will not be affected.

A stock split is a procedure where a company divides its current shares into multiple new ones. In a 3-for-1 split, every share transforms into three, while the total value stays intact. This strategy can be beneficial when investors feel intimidated by high asset or share prices, as reducing the price per share makes the stock more accessible to retail investors without altering the underlying value.

As of June 2, ARKB ended trading at $104.25 per share. If the stock split were to occur immediately, each share would be priced at approximately $35, a third of the current value.

Despite being a joint venture between 21Shares and investment manager ARK Invest, ARKB has recently been underperforming, experiencing outflows of $430 million over six consecutive trading days. Nevertheless, with total aggregate inflows of $2.37 billion, it is the third-largest fund trailing behind similar ETFs from BlackRock and Fidelity. As of now, ARKB manages $4.8 billion in assets and has a year-to-date return of 7.35%.

Spot Bitcoin ETFs in the US have seen a net outflow of $1.2 billion in the past three trading days. This trend coincides with a 4% drop in Bitcoin prices from over $108,000 to just under $104,000 on June 2. Despite this, consistent demand is evident from the seven consecutive weeks of net inflows reported by Glassnode.

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The proposed 21Shares Dogecoin ETF aims to track the value of the internet-famous cryptocurrency Dogecoin (DOGEUSD), as stated in the company’s Form S-1 registration document dated April 9. To boost the fund’s marketing efforts, the corporate section of the Dogecoin Foundation, House of Doge, is expected to collaborate with 21Shares.

Although 21Shares has chosen Coinbase Custody to be the intended custodian of its Dogecoin ETF, it has yet to disclose the fee, ticker, or the exchange it will be listed on. In addition, the company needs to submit a 19b-4 filing to the SEC, which will initiate the regulatory approval process for the fund.

Currently, DOGE has a market cap of $24.2 billion, making it the eighth largest cryptocurrency in terms of value. It was initially created in 2013 as a joke, branching from Lucky Coin, which itself is a Bitcoin fork.

The proposed Dogecoin ETF is the latest in 21Shares’ efforts to broaden its range of spot crypto ETF offerings. Currently, its portfolio includes only Bitcoin (BTC) and Ether (ETH). In February, the company filed with the SEC to launch a Polkadot (DOT) ETF, and last year, it filed to create an XRP (XRP) ETF.

The recent wave of crypto ETF proposals signifies issuers’ attempts to see which products might gain approval from the newly appointed SEC leadership, according to Bloomberg ETF analyst James Seyffart. Seyffart and his colleague Eric Balchunas estimated in February that the SEC has a 75% likelihood of greenlighting a spot Dogecoin ETF this year. Meanwhile, betting platform Polymarket currently puts the approval odds at 64%.

On April 9, 21Shares also announced its partnership with House of Doge to launch a fully backed Dogecoin exchange-traded product on the SIX Swiss Exchange. The 21Shares Dogecoin product will be listed under the ticker “DOGE”, with a fee of 2.5%. “Dogecoin has evolved beyond a simple cryptocurrency into a cultural and financial movement that continues to fuel mainstream adoption,” said 21Shares president Duncan Moir. “Our DOGE offering gives investors a regulated avenue to be part of this thrilling journey.”

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The proposed fund, known as the 21Shares Polkadot Trust, is slated to be listed on the CBOE BZX Exchange. Coinbase has been chosen as the custodian for the DOT tokens.

An Endeavor to Expand Crypto Investment Opportunities

The primary objective of this ETF is to simplify the process of Polkadot acquisition for both institutional investors and regular individuals. The blockchain’s unique feature is its interoperability, which facilitates seamless communication and data sharing across different networks.

21Shares seeks to build a bridge between conventional finance and the crypto universe by introducing an ETF. This would make DOT an appealing investment option for those who prefer structured investments over direct cryptocurrency ownership.

Despite the attention that Bitcoin and Ethereum spot ETFs have received, the demand for diversified crypto-based ETFs is growing. Polkadot’s involvement highlights the increasing interest in alternative currencies. However, the success of this application largely depends on the SEC’s view of Polkadot’s regulatory status, a factor that could significantly influence the approval outcome.

Market Performance Posing Challenges

Despite the optimism that prompted the filing, Polkadot has faced some market hurdles. Over the past year, the price of DOT has dropped about 5%, and it has fallen more than 10% in the last month alone. Currently, DOT is trading at roughly $6.42, a notable downturn from its previous record highs.

The ETF application acknowledges this volatility, cautioning potential investors about the possible risks. Even if the ETF is established, Polkadot’s value may continue to fluctuate, and there is no guarantee that the token will recover or appreciate soon.

Regulatory Concerns May Influence Approval Chances

There are significant apprehensions about Polkadot’s potential legal standing in the US, which could affect the security status of this ETF. The Web3 Foundation, Polkadot’s supporter, has tried to depict DOT as a digital asset rather than a security risk. As the SEC’s approach toward digital assets continues to evolve, Polkadot’s security status could pose a challenge for 21Shares in their pursuit of an ETF.

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