Key Insights
- •21Shares disclosed a management fee of 0.50% for its XRP ETF.
- •The issuer has not disclosed a fee waiver for its XRP fund.
- •XRP price rebounded and holds above $2.10 amid XRP ETF buzz.
21Shares, one of the world’s largest issuers of crypto exchange-traded products, finally revealed the management fee for its XRP ETF on Thursday. This follows the 21Shares XRP ETF’s auto-effective approval via 8-A with the U.S. Securities and Exchange Commission (SEC). XRP price continues to fall despite the buzz surrounding multiple XRP ETF launches.
21Shares XRP ETF Amends S-1 to Disclose Fee
According to an SEC filing on November 20, 21Shares filed a fourth amendment to its S-1 to disclose a management fee of 0.50%. The fee details remained redacted in its earlier filings. The details regarding the potential fee waiver have not been disclosed by 21Shares yet. Meanwhile, Bitwise, Franklin Templeton, and Grayscale have revealed a fee waiver. Franklin XRP Exchange-Traded Fund (XRPZ) has the lowest 0.19% fee. However, the fee doesn’t matter until the fee waiver period set by issuers. The filing also revealed details of the initial seed purchase by 21Shares US LLC. It is expected to purchase initial seed creation baskets comprising 20,000 shares at $25 per share, accounting for $500,000.
21Shares XRP ETF Becomes Auto-Effective for Launch
21Shares XRP ETF became auto-effective with a Form 8-A filing, which is usually among the last steps in the approval process. CBOE BZX Exchange also approved the listing of shares on the exchange under the ticker symbol “TOXR.” The ETF is expected to start trading next week, pending a certification of listing by the exchange. 21Shares has retained the delay amendment in the prospectus, despite the SEC’s post-government shutdown guidance. The trust’s investment objective is to provide exposure to XRP, tracking spot XRP prices from the CME CF XRP-Dollar Reference Rate pricing benchmark. Coinbase Custody, Anchorage Digital Bank, and BitGo Trust will serve as the custodian for the 21Shares XRP exchange-traded fund. Notably, BNY Mellon will serve as the cash custodian, administrator, and transfer agent of the trust. Foreside Global Services is the marketing agent. As The Coin Republic reported, Bitwise XRP ETF will begin trading on NYSE Arca under the ticker “XRP” today. Meanwhile, Bloomberg analyst James Seyffart confirmed the launch of Grayscale and Franklin Templeton’s XRP ETFs on Monday.
XRP Price Holds Above $2.10
XRP price saw a much-needed rebound amid XRP ETF buzz over the last 24 hours. At the time of writing, the price was trading at $2.12. The 24-hour low and high are $2.01 and $2.15, respectively. Trading volume also saw a 33% increase over the last 24 hours, indicating a rise in interest among traders. Meanwhile, derivatives markets showed mixed sentiment in the last few hours, as per CoinGlass data. At press time, the total XRP futures open interest tumbled nearly 3% to $3.69 billion in the last 24 hours. The 4-hour XRP futures open interest has climbed 0.40%. CME, Binance, and OKX saw a rise of almost 0.10%, 0.26%, and 3.40% in the last 4 hours, respectively.